The Impact of Profitability, Liquidity, Firm Size, and Sales Growth on Firm Value in the Food and Beverage Subsector

ABSTRACT : An elevated corporate valuation reflects enhanced shareholder prosperity, motivating executives to boost organizational effectiveness and attract prospective investors. This study explores the extent to which profitability, liquidity, enterprise scale, and revenue expansion shape firm valuation among food and beverage companies listed on the Indonesia Stock Exchange between 2019 and 2023. A purposive sampling approach refined the sample to 26 entities from a total pool of 100. Data analysis employed panel data regression using EViews 12 Student Version Lite. Findings reveal that profitability and liquidity exert no meaningful influence on firm valuation. In contrast, enterprise scale shows a significant inverse relationship, while revenue growth exerts a favorable and statistically significant effect. Theoretically, these insights suggest that market participants may not uniformly perceive all financial metrics as advantageous. Practically, decisionmakers and investors are encouraged to emphasize initiatives that stimulate sales expansion, while being mindful of the potential valuation risks associated with organizational upscaling.

KEYWORDS – Firm Value, Profitability, Liquidity, Firm Size, Sales Growth