Dynamics of PBV, DER, NPM, and ROE: Analysis of Financial Performance and Market Valuation of the Healthcare Sector in the Indonesian Capital Market (2021-2024)
DOI:
https://doi.org/10.55927/ijsmr.v3i11.716Keywords:
PBV, DER, NPM, ROE, BEI Healthcare SectorAbstract
This study analyzes the dynamics of key financial ratios—Price to Book Value (PBV), Debt to Equity Ratio (DER), Net Profit Margin (NPM), and Return on Equity (ROE)—in influencing financial performance and market valuation in the healthcare sector on the Indonesia Stock Exchange (IDX) for the 2021-2024 period. Using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, this study explores the causal relationship between independent variables (DER, ROE, NPM) and PBV as the dependent variable, using secondary data from the financial statements of 15-20 healthcare sector issuers. The analysis includes testing the outer model for validity and reliability, as well as the inner model for path coefficients through bootstrapping (5,000 iterations). The results show that the overall model has a low R² (0.057; adjusted R² 0.011), indicating that internal variables explain little variation in PBV. Specifically, NPM has the strongest positive effect (coefficient 0.542; p=0.112, marginally significant), while DER and ROE exhibit a weak, insignificant negative relationship (p>0.05). This finding reflects the dominance of external factors such as post-pandemic health regulations and emerging market sentiment on the IDX, where operational efficiency (NPM) is more crucial than leverage or equity returns.
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