This study investigates the effect of capital structure policy on the market valuation of listed food and beverage firms in Nigeria from 2014 to 2023. Employing a panel research design, the study integrates time-series and cross-sectional data to examine how key financing indicators Debt-to-Equity Ratio (DER), Leverage Ratio (LER), and Interest Coverage Ratio (ICR) influence firm value, measured by Tobin’s Q. Secondary data were sourced from the Nigerian Exchange Group (NGX) and firms’ audited annual reports, ensuring compliance with IFRS and FRCN standards. A census approach was adopted to cover all thirteen listed firms that met the inclusion criteria. Descriptive statistics, correlation analysis, panel unit root tests, and multiple regression techniques were applied using E-Views 12 software. The panel unit root tests confirmed stationarity at first difference for all variables, validating the use of regression models. The Hausman test results favored the fixed effects model as the most appropriate specification, accounting for firm-specific variations. Empirical findings revealed that DER had a negative and statistically significant effect on Tobin’s Q, indicating that excessive debt financing reduces market valuation. Conversely, both LER and ICR exerted positive and significant influences on market valuation, implying that moderate leverage and strong earnings capacity enhance firm value. The overall model was statistically robust, with an adjusted R-squared of 0.74, suggesting that capital structure indicators explain about 74% of the variation in market valuation. The study concludes that maintaining an optimal mix of debt and equity financing is crucial for improving firm valuation in Nigeria’s food and beverage sector. It recommends that managers adopt prudent financing strategies that enhance interest coverage and investor confidence while avoiding excessive leverage that may erode firm value.