Equity multiple and annualized rate of return can provide a quick and easy way to compare two investments. However, they aren’t a substitute for a detailed financial and risk analysis.
Read MoreNeither equity multiple nor IRR provides a complete view of an investment. However, since those metrics often are presented side-by-side, investors should understand each metric and its strengths and weaknesses.
Read MoreIRR can be an excellent way to compare dissimiliar investments. However, since an accurate IRR can be calculated only after an investment has been sold, IRR forecasts aren't a guarantee of financial performance.
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