Abstract
This study aims to examine the financial ratios of profitability and solvency to the value of the property and real estate companies in the Indonesia Stock Exchange in the period 2008 - 2018. The data used in this study are secondary data obtained from the IDX. The sample in this study are property and real estate companies listed on the Indonesia Stock Exchange in 2008-2018. Data collection is using documentation techniques, namely by looking at existing documents (financial reports and annual reports). The company's financial statements are obtained from the access website of the Indonesia Stock Exchange (www.idx.co.id) in the period 2008-2018.2018. The results of the study are the company's profitability has a significant effect on the business value of property companies and real estate companies that go public on the Indonesia Stock Exchange (IDX). Company solvency has a negative and significant effect on the Business Value of Property and Real Estate Companies that are Go Public on the Indonesia Stock Exchange (IDX). Simultaneously, the company's profitability and solvency affect the business value of property companies and real estate companies that go public on the Indonesia Stock Exchange (IDX).
Highlights
PRELIMINARY According to Harahap (2010: 217) that the value of the company can be measured in several ways, one of which is by analysing financial ratios
Company Value is a value that can be used to measure how big the "Level of Interest" of a company is seen from the perspective of several parties such as investors who associate the value of a company from its share price Maximizing the value of a company is the same as maximizing stock prices because high company values identify the prosperity of shareholders. ng high (Gultom et al, 2013: 52)
Data collection techniques in a direct observation method, namely: Research Field (Field Research) This research was conducted to obtain data about the secondary in this case the property sector companies that go public which has been listed on the Indonesia Stock Exchange (IDX) Research Library (Library Research) Studying the theory and references related to the topic of language to compile this thesis, as well as data collection is done by studying all related material
Summary
PRELIMINARY According to Harahap (2010: 217) that the value of the company can be measured in several ways, one of which is by analysing financial ratios. Wealth of shareholders and companies is represented by market and share prices which are a reflection of investment, funding and asset management decisions Some of these meanings it can be concluded that what is meant by the value of the company is the price a prospective buyer is willing to pay if the company is sold and reflects the market perspective in assessing the performance and condition of a company. Solvency The definition of solvency according to Kasmir (2014: 150) is "solvency or leverage ratio is a ratio used to measure the extent to which a company's activities are financed with debt." according to Irham Fahmi (2014: 59) solvency is a ratio that shows how a company is able to manage its debt in order to obtain profits and is able to repay its debt Another opinion means that solvency shows the company's ability to meet its financial obligations if the company is liquidated, both short-term and long-term financial obligations (Munawir; 2007). Companies that do not have leverage (solvency) means using 100% capital (Agus Sartono, 2010; 120)
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