Impact of Big Data, Profitability, and Free Cash Flow to Company Value

Abstract

This research examined into firms in the cyclical sector that were listed on the Indonesia Stock Exchange among 2018 to 2021. The study sample was 40 companies from the cyclical sector, as classified by the Indonesian Stock Exchange. In this study, big data technology will be represented by software intangible assets, and the device ratio will be derived by comparing the investment in software to the overall assets of the organization. Profitability will be measured by Return on Assets, while free cash flow will be calculated using the FCF formula and firm value will be calculated using the Price to Book Value ratio. The research was conducted using multiple regression approach. Based on the results of the analysis, all independent variables have a positive impact on firm value.