The Relationship Between Firm Value and Stock Prices of Listed Companies in the Stock Exchange of Thailand with Sustainable Business Practices
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Abstract
This research aims to assess overall financial factors, study enterprise value, and compare groups of profit factors with valuation that are related to the stock price of sustainable companies. The sample groups include Bangkok Bank Public Company Limited (BBL), Kasikornbank Public Company Limited (KBANK), Krungthai Bank Public Company Limited (KTB), PTT Public Company Limited (PTT), and PTT Exploration and Production Public Company Limited (PTTEP). Quarterly data collection from 2015 to 2024 were analyzed. The Panel Econometrics model found that earnings per share (EPS) and net profit margin (NPM) have a positive relationship with stock price with a confidence level of 99%. Earnings before interest and taxes (EBIT) and return on assets (ROA) have a negative relationship with stock price. With 99% confidence, the Fixed Effects model is more appropriate than Pooled OLS and can evaluate 79% of the financial factors. Relationship between TOBINS’Q and stock price BBL found that EPS and price-to-earnings ratio (P/E ratio) have a positive relationship with the stock price, while EBIT has a negative relationship with the stock price with 99% confidence. KBANK found that P/E ratio has a positive relationship with the stock price, NPM and ROA have a negative relationship with the stock price with 99% confidence and 90% confidence, respectively. KTB found that EPS and P/E ratio have a positive relationship with the stock price with 99% confidence. PTT found that EBIT, P/E ratio and dividend payout ratio (DPR) have a positive relationship with the stock price with 99% confidence. PTTEP found that EPS has a positive relationship with the stock price, P/E ratio and NPM have a negative relationship with the stock price with 99% confidence, 95% and 99% confidence, respectively. The comparison found that the profit factor group, including EBIT, has a positive relationship with the stock price with 99% confidence, and EPS has a positive relationship with the stock price with 95% confidence. DPR valuation group has a positive relationship with the stock price with 99% confidence.
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