The Alternative Investor

The Three Most Important Investment Metrics


Listen Later

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


For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

The Alternative Investor on iTunes — Leave us a review!

Hosted on Acast. See acast.com/privacy for more information.

...more
View all episodesView all episodes
Download on the App Store

The Alternative InvestorBy Brad Johnson

  • 4.9
  • 4.9
  • 4.9
  • 4.9
  • 4.9

4.9

198 ratings


More shows like The Alternative Investor

View all
Motley Fool Money by The Motley Fool

Motley Fool Money

3,229 Listeners

We Study Billionaires - The Investor’s Podcast Network by The Investor's Podcast Network

We Study Billionaires - The Investor’s Podcast Network

3,346 Listeners

Investing Insights by Morningstar

Investing Insights

517 Listeners

Exchanges by Goldman Sachs

Exchanges

977 Listeners

Masters in Business by Bloomberg

Masters in Business

2,175 Listeners

Odd Lots by Bloomberg

Odd Lots

1,995 Listeners

Invest Like the Best with Patrick O'Shaughnessy by Colossus | Investing & Business Podcasts

Invest Like the Best with Patrick O'Shaughnessy

2,347 Listeners

Capital Ideas Podcast by Capital Group

Capital Ideas Podcast

288 Listeners

Capital Allocators – Inside the Institutional Investment Industry by Ted Seides – Allocator and Asset Management Expert

Capital Allocators – Inside the Institutional Investment Industry

798 Listeners

Animal Spirits Podcast by The Compound

Animal Spirits Podcast

2,019 Listeners

Value Investing with Legends by Columbia Business School

Value Investing with Legends

208 Listeners

Dry Powder: The Private Equity Podcast by Hugh MacArthur, Bain & Company

Dry Powder: The Private Equity Podcast

150 Listeners

The Memo by Howard Marks by Oaktree Capital Management

The Memo by Howard Marks

436 Listeners

Business Breakdowns by Colossus | Investing & Business Podcasts

Business Breakdowns

355 Listeners

Acquiring Minds by Will Smith

Acquiring Minds

275 Listeners