Realization Multiple

What is a ‘Realization Multiple’

A realization multiple is a private equity measurement that values the return paid to an investor. The multiple is named after the amount of return that is realized. The realization multiple is found by dividing the cumulative distributions from a project by the paid-in capital.

Explaining ‘Realization Multiple’

This method of valuing a project is often used by venture capitalists, and provides a return which can be compared across investment projects. The time value of money is ignored under this approach, which differentiates the realization multiple from other valuation methods, such as internal rate of return or net present value.

Further Reading

  • Linking sustainable agriculture and public health: opportunities for realizing multiple goals – [PDF]
  • Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization – [PDF]
  • Realization of multiple-output biquadratic filters using current differencing buffered amplifiers – [PDF]
  • Realization and the metaphysics of mind – [PDF]
  • Realizing local development in the carbon commodity chain: political economy, value and connecting carbon commodities at multiple scales – [PDF]
  • Discovering potential and realizing value from information technology investments – [PDF]
  • Multiple versions of markets: Multiplicity and performativity in market practice – [PDF]
  • The single European energy market: The politics of realization – [PDF]
  • Remyelination in multiple sclerosis: realizing a long-standing challenge – [PDF]
  • Fixing realization accounting: Symmetry, consistency and correctness in the taxation of financial instruments – [PDF]