Multiple on invested capital (MOIC) is a financial metric that measures the efficiency and profitability of an investment. It is calculated by dividing the current market value of an investment by the total amount of capital invested. MOIC can be used to compare the performance of different investments and to assess the effectiveness of an investment strategy.
MOIC is an important metric for investors because it can provide insights into the potential return on investment (ROI) and the risk associated with an investment. A high MOIC indicates that an investment is generating a strong return, while a low MOIC may indicate that an investment is not performing as well as expected. MOIC can also be used to identify undervalued investments and to make informed investment decisions.