Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 335-339
Effect of Profitability, Liquidity and Leverage on Intrinsic Value of Shares with Probability of Financial Distress as Intervening in Property and Real Estate Sector Companies in 2010-2018
Sri Anggraini Putri1, Rina Br Bukit2, Iskandar Muda2
1Postgraduate Students Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
Corresponding Author: Sri Anggraini Putri
ABSTRACT
Investors can perform stock analysis to estimate the intrinsic value of a stock and then compare it with the current market price. The intrinsic value shows the present value of the cash flows expected from the stock. This study aims to determine and analyze the effect of profitability, liquidity and leverage on intrinsic value of shares with probability of financial distress as intervening in property and real estate sector companies in 2010-2018. This population selected the target population with a total sample of 48 companies. Hypothesis testing uses data analysis techniques, structural equation modeling, or what is called structural equation modeling. The results of this study indicate that profitability has a negative and significant effect on financial distress, liquidity has a positive and significant effect on financial distress, leverage has a positive and significant effect on financial distress, profitability has a positive and significant effect on intrinsic value, liquidity has a negative and insignificant effect on intrinsic value, leverage has a negative and insignificant effect on intrinsic value, financial distress has a positive and insignificant effect on intrinsic value, financial distress is able to intervening profitability on intrinsic value, financial distress is unable to intervening liquidity on intrinsic value, financial distress is unable to intervening leverage on the intrinsic value.
Keywords: Profitability, Liquidity, Leverage, Financial Distress, Intrinsic Value.
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