This study aims to examine the effect of bank soundness on firm value. This study uses components of bank soundness assessment, namely risk profile, good corporate governance, earnings, and capital provision to examine its effect on investor decision making so that it affects firm value. The population of this research is all banking companies in Indonesia that are listed on the Indonesia Stock Exchange and the sample is selected using purposive sampling technique in the research period 2015 to 2020. Data analysis uses panel data regression. The results showed that the risk profile as measured by the non-loan profile had an effect on firm value, while the proportion of the board of commissioners, the ratio of operating costs to operating income, and the bank's capital adequacy ratio had no effect on firm value. It can be concluded from the results of the study that investors do not use the health component information partially but by integrating all bank health information. This is reflected from the study results that simultaneously all variables affect the value of the company. The results of this study imply that credit risk management and lending policies are the main considerations investor decision making. Thus, banks need to maintain the optimization of lending while maintaining the provision of capital and liquidity and managing credit risk.