The Alternative Investor

The Three Most Important Investment Metrics


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We’re getting technical today — so fasten your seatbelts, buckle up, take an extra sip of coffee and get ready for today’s show. 


We’re going to be diving into the topic of the three most important investment metric:; NPV (Net Present Value), IRR (Internal Rate of Return), and MOIC (Multiple on Invested Capital.) These metrics are incredibly valuable because, at the end of the day, these are the measures that help investors know how much money they’re going to get back in their pockets after investing in your deal. We hope you’ll join us today to learn about these three important metrics!


Key Takeaways:

[:12] About today’s topic!

[:41] What do NPV, IRR, and MOIC stand for?

[1:54] What is NPV? What does it indicate?

[5:48] What is IRR? How does NPV and IRR compare?

[9:08] What is MOIC? What does it indicate? 

[10:11] Key takeaways of IRR, NPV, and MOIC — and what investors are looking for.


Mentioned in this Episode:

NPV

IRR

MOIC

Excel

XIRR


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The Alternative InvestorBy Brad Johnson

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