BROWSE

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
www.tandfonline.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realizationIntegrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization
pubsonline.informs.org [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Realization of multiple-output biquadratic filters using current differencing buffered amplifiersRealization of multiple-output biquadratic filters using current differencing buffered amplifiers
www.tandfonline.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Realization and the metaphysics of mindRealization and the metaphysics of mind
www.tandfonline.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Realizing local development in the carbon commodity chain: political economy, value and connecting carbon commodities at multiple scalesRealizing local development in the carbon commodity chain: political economy, value and connecting carbon commodities at multiple scales
www.econstor.eu [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Discovering potential and realizing value from information technology investmentsDiscovering potential and realizing value from information technology investments
www.tandfonline.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Multiple versions of markets: Multiplicity and performativity in market practiceMultiple versions of markets: Multiplicity and performativity in market practice
www.sciencedirect.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

The single European energy market: The politics of realizationThe single European energy market: The politics of realization
heinonline.org [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Remyelination in multiple sclerosis: realizing a long-standing challengeRemyelination in multiple sclerosis: realizing a long-standing challenge
www.tandfonline.com [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …

Fixing realization accounting: Symmetry, consistency and correctness in the taxation of financial instrumentsFixing realization accounting: Symmetry, consistency and correctness in the taxation of financial instruments
heinonline.org [PDF]
… As we move toward greater sustainability in health, farming, economics, and the environment, we will continually identify … Linking Sustainable Agriculture and Public Health: Opportunities for Realizing Multiple Goals … [Google Scholar]; Swenson D. The Economic Impacts of …



Q&A About Realization Multiple


How is the realization multiple found?

By dividing the cumulative distributions from a project by the paid-in capital.

Is there another way to value a project using private equity?

Yes, there are other methods such as internal rate of return and net present value. These methods differ from realization multiples in that they consider time value of money. This means that they take into account how much money you will have in future years if you invest your money now instead of spending it today. Realization multiples do not consider time value of money, so they are different than these other valuation methods.

What does the realization multiple value?

The return paid to an investor.

What is the name of this private equity measurement?

The realization multiple.

Why do venture capitalists use this method of valuing a project?

To provide a return which can be compared across investment projects.