MOIC

MOIC compares cash received plus the value still owned with the money invested. A 2.8× multiple means $2.80 of total value for each $1 invested; it does not show how long that took.

Also called Multiple on invested capital

Related variants Gross MOIC, Net MOIC

MOIC in round numbers

Putting in $300 and receiving $840 at realization gives a 2.8x MOIC. MOIC does not require a multi-year hold. For an unrealized investment, include its remaining equity value as well as distributions and state the valuation basis.

Assume no interim distributions, additional equity, fees or taxes. Enterprise value increases 30%; equity increases 180%. The equity gain of 54 comprises 30 of enterprise-value growth and 24 of net-debt reduction. Equity MOIC = 84 ÷ 30 = 2.8x.

Scroll horizontally to read all columns.

Hypothetical debt-paydown bridge; common monetary units
MeasureEntryExit
Enterprise value100130
Net debt7046
Equity value3084

IRR · Leverage · Cash-on-cash return · IRR Grade Inflation · Multiple expansion · Payback period · Equity multiple · All of the glossary