THE INFLUENCE OF REVENUE, OPERATING PROFIT, AND NET PROFIT ON THE VALUE OF ISLAMIC BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

Abstract

Islamic banking, as one of the main pillars of the Islamic financial system in Indonesia, continues to experience quite rapid growth in both assets and market share. However, this development is not supported by the development of the market value of Islamic banking companies on the Indonesia Stock Exchange. The value of Islamic banking companies, as measured by Price to Book Value (PBV), tends to experience a downward trend. The purpose of this study is to determine and identify the influence of revenue, operating income, and net income on the value of Islamic banking companies on the IDX. PBV, as a reflection of investor expectations regarding the company's ability to generate profits, and various related theories such as signaling theory and market anomalies, form the basis of this research. The method used in this study is a quantitative approach using secondary data obtained through the Stockbit application in the form of financial data from the first quarter of 2020 to the third quarter of 2025. A sample of four Islamic banking companies listed on the IDX, with a total of 76 observation data units. Data analysis was conducted through panel data regression analysis using EViews 12. The results of this study indicate that there is no significant effect between revenue, operating profit, and net profit on firm value, as measured by PBV, both simultaneously and partially, for Islamic banking companies listed on the Indonesia Stock Exchange. This indicates that investors consider other factors more when investing in Islamic banking companies.