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Time value of money Indicator Formula Tools PV FV ÷ (1 + r)n FV PV × (1 + r)n PV of Annuity PMT × [1 − (1 + r)−n ] ÷ r
NPV and IRR Indicator Formula Tools NPV Σ CFt ÷ (1 + r)t − initial investment Calculate IRR The rate at which NPV = 0 Calculate MIRR (FV of positive cash flows ÷ PV of negative cash flows)1/n − 1
Returns Indicator Formula Tools ROE Net profit ÷ average equity ROIC NOPAT ÷ invested capital NOPAT EBIT × (1 − tax rate) MOIC Total distributions ÷ investment Calculate Cash-on-Cash Annual cash received ÷ equity invested
Valuation Indicator Formula Tools DCF Σ FCF ÷ (1 + WACC)t + Terminal Value Terminal Value (Gordon) FCF × (1 + g) ÷ (WACC − g) Enterprise Value Equity value + debt − cash Cap Rate NOI ÷ property value Calculate
Debt burden and debt service capacity Indicator Formula Tools DSCR CFADS ÷ Debt Service Calculate CFADS EBITDA − tax − increase in working capital − maintenance CAPEX ICR EBITDA ÷ interest expense Calculate LTV Debt ÷ property value Calculate LTC Debt ÷ total project cost Calculate Net Debt/EBITDA (Debt − cash) ÷ EBITDA
Cost of capital Indicator Formula Tools WACC E/V × Re + D/V × Rd × (1 − T) Calculate Re (CAPM) Rf + β × (Rm − Rf) Calculate Rd after tax Rd × (1 − T)
Real estate-specific Indicator Formula Tools NOI Effective revenue − operating expenses Calculate GDV Number of units × average price, or sales area × price per sq m Profit on Cost (Revenue − cost) ÷ cost Calculate Residual Land Value GDV − development cost − developer profit − finance cost Calculate Gross Rent Multiplier Property price ÷ annual rent
KPIs for the executive dashboard KPI Formula Frequency Revenue Growth (Current period − previous period) ÷ previous period Monthly Gross Margin (Revenue − cost of sales) ÷ revenue Monthly EBITDA Margin EBITDA ÷ revenue Monthly Days Cash on Hand Cash ÷ daily operating expenses Weekly Working Capital Days Receivables + inventory − payables Monthly Presale % Units sold ÷ total units Weekly Cancellation Rate Units cancelled ÷ units sold Monthly Construction Progress % physical completion Monthly DSCR / LTV Per the formulas above Quarterly