What is Total Shareholder Return?

Internal Rate of Return (IRR) : The most appropriate benchmark for measuring the performance of private equity investments. In short, the internal rate of return is a time-weighted return expressed as a percentage. The internal rate of return is calculated using cash withdrawal (investment amount) present value, distribution (investment return funds) present value, and unrealized investment present value calculation, and a discount rate needs to be calculated.

IRR

discuss

1. The total shareholder return generally refers to the internal rate of return.

Internal Rate of Return (IRR) : The most appropriate benchmark for measuring the performance of private equity investments. In short, the internal rate of return is a time-weighted return expressed as a percentage. The internal rate of return is calculated using cash withdrawal (investment amount) present value, distribution (investment return funds) present value, and unrealized investment present value calculation, and a discount rate needs to be calculated.

Chinese name

IRR

Foreign name

IRR

Nature

Benchmark to measure private equity investment performance

Explanation

Time-weighted return as a percentage

Introduction

The internal rate of return method is a method of evaluating investment options. This method calculates a discount rate that will bring the net present value to zero. This discount rate is called the internal rate of return. Then evaluate the investment plan by comparing the internal rate of return with the expected cost of funds in the financial market. If the former is greater than the latter, the solution is desirable; otherwise, it is not desirable.