Operational efficiency affecting stock price assessment and stock value of listed companies in the Thailand Sustainability Investment (THSI) index

Abstract

The objectives of the research were to study operational efficiency’s impact on stock valuation and to study stock valuation that affected the value of securities of companies listed on the Stock Exchange of Thailand. The study focused on the sustainable equity group “THSI” using quantitative research methods. The sample consisted of companies registered on the Stock Exchange of Thailand within the years 2563-2565.The analysis revealed the following results: Return on Assets (ROA) positively influenced stock valuation measured by the Price-to-Earnings ratio (P/E). Return on Equity (ROE) also had a positive impact on stock valuation measured by the P/E ratio. Gross Profit Margin (GPM) and Net Profit Margin (NPM) did not significantly affect stock valuation measured by the P/E ratio. However, the efficiency variables affecting stock valuation measured by Earnings per Share (EPS) were as follows: Net Profit Margin (NPM) had a negative impact at a statistically significant level of 0.05. Gross Profit Margin (GPM) had a positive impact. ROA and ROE did not significantly affect stock valuation measured by Dividends per Share (DPS). The stock valuation included the Price-to-Earnings ratio (P/E Ratio), Earnings per Share (EPS), and Dividends per Share (DPS). These positively impacted stock value when measured by the statistically significant Price-to-Stock Price (STP). Additionally, stock valuation measured by the Stock Total Return (STR) was positively affected by the P/E Ratio and DPS. However, EPS negatively impacted stock valuation measured by the STR.