Multiple On Invested Capital (MOIC)
Multiple on Invested Capital (MOIC) measures the total return on investment expressed as a multiple of the initial capital invested. Unlike IRR, which considers the time value of money, MOIC focuses solely on the total return generated by an investment. It is a straightforward metric used by investors to assess the overall success of an investment relative to the amount initially committed.
Key Takeaways
- Measures total return as a multiple of invested capital.
- Does not consider the time value of money.
- Useful for evaluating overall investment success.
- Simple and widely used in finance.
