Multiple on Invested Capital (MOIC) is a simple metric that shows how much an investor earns on an investment, without accounting for the time value of money (unlike IRR).MOIC is commonly used in private equity and LBO analysis to provide a quick snapshot of total returns, regardless of the investment horizon.A simplified estimate of IRR can be calculated from MOIC as:n represents the number of years (or periods) you hold the investment.
Learn Multiple on Invested Capital (MOIC) with interactive examples and practice exercises in our Mergers and Acquisitions module.
This interactive learning module helps you understand Multiple on Invested Capital (MOIC) through hands-on practice and real-world examples.