Capital structure, profitability, and firm values

Abstract

The firm value is the investor's view of the level of success of the company associated with stock prices. Factors that influence firm value include capital structure and profitability, both of which have a relationship and influence on inconsistent company values. This study aims to analyze and assess whether capital structure and profitability affect the value of companies. The method used in this study is comparative and literature study by comparing research with one another to obtain a conclusion. The results of this study indicate that the capital structure and profitability affect the value of the company. Because optimal capital structure and high level of profitability can increase the value of the company.