Koreograph compares deals using a mixture of return, risk and cash measures. No single metric tells the whole story.
IRR
IRR estimates the annualised return implied by the modelled cashflows. It is useful for comparing timing-sensitive outcomes, especially where refurb, refinance or exit proceeds occur at different points.
DSCR
DSCR, or debt-service coverage ratio, compares operating income against debt service. A higher DSCR usually means more breathing room. Lender-style cover requirements may vary by ownership, tax position and product.
Cashflow
Cashflow is rent less expenses, interest, principal, tax, finance costs and other modelled items. Year-one cashflow can be distorted by refurb or void periods, so also review average and later-year cashflow.
Total wealth
Total wealth represents the modelled end position, including cash in bank and final equity after debt, taxes and selling costs where an exit is assumed.