Investment metrics are quantitative measures used to evaluate the performance and potential of an investment. Common metrics include return on investment (ROI), net present value (NPV), and internal rate of return (IRR). These metrics help investors assess how well an investment is performing compared to others and whether it meets their financial goals.
Understanding investment metrics is crucial for making informed decisions. They provide insights into profitability, risk, and overall financial health. By analyzing these metrics, investors can determine the best opportunities and strategies for maximizing their returns while managing potential risks effectively.