The worth of companies especially in the bank industry is critical in indicating financial prowess, investor trust and economic expansion. In this work, the authors investigate how liquidity management and capital adequacy affect the value of the firm of the Nigerian Deposit Money Banks (DMBs). The main aim is to determine the relationship between measures of liquidity (i.e., the current ratio (CR), the deposit-asset ratio (DAR), the loan-deposit ratio (LDR)) and the capital adequacy ratio (CAR) in terms of their relationship with the firm value. The study uses a panel data regression model, where the sample consists of 11 listed DMBs in the period of 2015 to 2024. Its methodology is based on fixed effects models and Driscoll-Kraay standard errors to explain cross-sectional dependence and heterogeneity at the firm level. The major conclusions have shown that although liquidity indicators such as CR have such a strong negative effect on the firm value, which is the sign of inefficiency in managing liquidity, LDR has a positive correlation with the firm value, which highlights the significance of an effective credit intermediation. The research also concludes that CAR mediates the correlation between liquidity ratios and firm value at least in the case of DAR and LDR, indicating that a high level of capital base positively affects the performance of liquidity management. Nevertheless, CAR is not a direct influence on the value of the firm. The research offers to the banks to implement more wholesome liquidity management policies, better credit risk management, and dynamic capital adequacy policies. These should be encouraged by policymakers by having regulatory control and risk-sensitive capital adequacy tests. The research findings can be used in the literature on the topic of bank valuation and also provide valuable information on how to enhance the banking performance in the emerging markets.