This is a a return metric showing the amount an investor’s capital has increased over the course of time. Also known as EMx, it is found by dividing the sum of all inflow capital by the sum of all outflow capital. The equity multiple describes the complete cash returned to the investor. In the real estate investment analysis, it is often used alongside the internal rate of return.
Equity Multiple
This is a a return metric showing the amount an investor’s capital has increased over the course of time. Also known as EMx, it is found by dividing the sum of all inflow capital by the sum of all outflow capital. The equity multiple describes the complete cash returned to the investor. In the real estate investment analysis, it is often used alongside the internal rate of return.
