International Journal of Research and Review Vol.8; Issue: 3; March 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 315 Vol.8; Issue: 3; March 2021 Effect of Capital Adequacy Ratio, Non Performing Loan, Growth Opportunity and Capital Structure on Intrinsic Value of Companies in the Banking Sector with Profitability as an Intervening Variable Mayang Terapulina Purba 1 , Iskandar Muda 2 , Rina Br Bukit 2 1 Postgraduate Students Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia 2 Postgraduate Lecturer Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia Corresponding Author: Mayang Terapulina Purba ABSTRACT The research objective was to determine the effect of capital adequacy ratio, non performing loan, growth opportunity and capital structure on intrinsic value of companies in the banking sector with profitability as an intervening variable. The population in this study were 44 banking companies listed on the Indonesia Stock Exchange. The research sample consisted of 23 banking companies listed on the IDX for the 2009-2018 period. The method of analysis uses path analysis with AMOS software. The results show that capital adequacy ratio has a positive and insignificant effect on profitability, non performing loan has a negative and significant effect on profitability, growth opportunity has a positive and insignificant effect on profitability, capital structure has a negative and insignificant effect on profitability, capital adequacy ratio has a negative effect and significant on intrinsic value of companies, non performing loan has a negative and significant effect on intrinsic value of companies, growth opportunity has a negative and significant effect on intrinsic value of companies, capital structure has a positive and insignificant effect on intrinsic value of companies, profitability has a positive and significant effect on intrinsic value of companies, profitability is able intervening capital adequacy ratio, non performing loan and growth opportunity on intrinsic value of companies, profitability unable intervening capital structure on intrinsic value of companies. Keywords: Capital Adequacy Ratio, Non Performing Loan, Growth Opportunity, Capital Structure, Profitability, Intrinsic Value of Companies INTRODUCTION In carrying out the investment process, it is important for investors to calculate the value of the company they are investing in to ensure that the investment in the company will provide the returns that investors expect. The calculation of company value can be done by various methods and it will be different for a specific type of business such as banking as a result of the financial structure of a specific banking company compared to trading companies and industrial companies. The difference in the financial structure of a banking company in this regard can be seen from the composition of the banking company capital which is dominated by short-term and long-term debt originating from third party funds. Thus, the calculation of the value of a banking company cannot be carried out using the same method as calculating the value of the company in other sectors, although in the end it remains with the same objective, namely to be able to determine the value of the company which is the investment destination. The high value of the company or the potential to be high in the investment period will be a