Common abbreviation for Equity Multiple.


Frequently Asked Questions about EMx (Equity Multiple)

EMx is a common abbreviation for Equity Multiple, a key return metric used in real estate investment analysis.

Equity Multiple is the ratio of total cash distributions received from an investment to the total equity invested. For example, an EMx of 2.0x means an investor received twice their initial equity back.

EMx is frequently used in real estate equity waterfall models and in evaluating investor returns in pro forma statements, alongside IRR.

EMx provides a simple measure of how much capital is returned to investors relative to their investment, independent of time, making it easy to compare total returns across deals.

The Weighted Equity Multiple adjusts for differences in equity contribution timing, offering a more nuanced view of return performance over time. See “Introducing Weighted Equity Multiple: An Alternative for Dynamic CRE Investments” for more.



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