You need to evaluate investments.
One calculator isn’t enough.
You need a 360° view.
You need integrated analysis.
ROI. NPV. DCF. Integrated analysis. Your 360° view.
This guide shows you how.
Calculator integration. Comprehensive analysis. Decision framework. Your clarity.
Read this. Use all tools. Get complete view.
Key Takeaways
- Start with ROI—use ROI Calculator to see return percentage quickly
- Calculate NPV—use Net Present Value Calculator to see if investment creates value
- Calculate DCF—use DCF Calculator to see true intrinsic value
- Compare results—compare ROI, NPV, and DCF to get complete picture
- Make decision—use all three metrics together for confident investment decision
Table of Contents
Why 360° View Matters
360° view enables complete analysis.
What happens with one metric:
- Analysis is incomplete
- Decisions are based on partial information
- Mistakes are made
- Opportunities are missed
What happens with 360° view:
- Analysis is complete
- Decisions are based on full information
- Mistakes are avoided
- Opportunities are captured
The reality: 360° view enables smart decisions.
Starting with ROI
Start with ROI for quick assessment:
Calculate ROI
Calculate it:
- Use our ROI Calculator
- Enter investment amount
- Enter expected return
- See ROI percentage
Why it matters: ROI provides quick return assessment.
Understand ROI
What ROI shows:
- Return percentage
- Profitability indicator
- Quick comparison tool
- Initial screening metric
Why it matters: Understanding enables quick decisions.
Use for Screening
How to use:
- Screen opportunities quickly
- Compare multiple investments
- Identify best returns
- Filter out poor options
Why it matters: Screening saves time.
Pro tip: Start with ROI. Use our ROI Calculator for quick assessment. ROI provides initial screening.
Calculating NPV
Calculate NPV for value assessment:
Calculate NPV
Calculate it:
- Use our Net Present Value Calculator
- Enter initial investment
- Enter cash flows
- Enter discount rate
- See NPV result
Why it matters: NPV shows value creation.
Understand NPV
What NPV shows:
- Value creation or destruction
- Time value of money
- Absolute dollar value
- Investment worthiness
Why it matters: Understanding enables value assessment.
Use for Deep Analysis
How to use:
- Assess value creation
- Compare to alternatives
- Evaluate time value
- Make value-based decisions
Why it matters: Deep analysis improves decisions.
Pro tip: Calculate NPV. Use our Net Present Value Calculator for value assessment. NPV shows value creation.
Calculating DCF
Calculate DCF for intrinsic value:
Calculate DCF
Calculate it:
- Use our DCF Calculator
- Enter cash flow projections
- Enter discount rate
- Enter terminal value
- See present value
Why it matters: DCF shows intrinsic value.
Understand DCF
What DCF shows:
- True intrinsic value
- Future cash flow value
- Business valuation
- Investment worth
Why it matters: Understanding enables valuation.
Use for Valuation
How to use:
- Value the opportunity
- Compare to investment needed
- Assess fair value
- Make valuation-based decisions
Why it matters: Valuation enables smart decisions.
Pro tip: Calculate DCF. Use our DCF Calculator for intrinsic value. DCF shows true worth.
Comparing Results
Compare all three metrics:
ROI vs. NPV vs. DCF
What to compare:
- ROI shows return percentage
- NPV shows value creation
- DCF shows intrinsic value
- All three together show complete picture
Why it matters: Comparison enables complete analysis.
Look for Consistency
What consistency to look for:
- All metrics positive
- All metrics align
- No contradictions
- Clear signal
Why it matters: Consistency builds confidence.
Identify Discrepancies
What discrepancies to identify:
- Metrics don’t align
- Contradictory signals
- Need for deeper analysis
- Potential issues
Why it matters: Discrepancy identification enables caution.
Pro tip: Compare results. ROI, NPV, DCF. Look for consistency, identify discrepancies. Comparison enables complete analysis.
Making Decision
Use all three metrics for decision:
When All Metrics Agree
What agreement means:
- All metrics positive
- Strong investment signal
- High confidence
- Clear go decision
Why it matters: Agreement enables confident decisions.
When Metrics Disagree
What disagreement means:
- Need deeper analysis
- Potential issues
- Lower confidence
- More caution needed
Why it matters: Disagreement requires caution.
Decision Framework
What framework to use:
- All positive: Strong go
- Mostly positive: Conditional go
- Mixed signals: Defer or investigate
- Mostly negative: No
Why it matters: Framework enables consistent decisions.
Pro tip: Make decision. Use all three metrics together. Agreement enables confidence, disagreement requires caution. See our investment triage framework guide for ranking.
Your Next Steps
Calculate all metrics. Compare results. Make decision.
This Week:
- Review this guide
- Calculate ROI for opportunities
- Calculate NPV for opportunities
- Calculate DCF for opportunities
This Month:
- Compare all three metrics
- Look for consistency
- Make investment decisions
- Track results
Going Forward:
- Use all three tools together
- Refine decision framework
- Improve analysis
- Make better decisions
Need help? Check out our ROI Calculator for return percentage, our Net Present Value Calculator for value creation, our DCF Calculator for intrinsic value, our investment triage framework guide for ranking, and our decision memo template guide for comprehensive analysis.
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Sources & Additional Information
This guide provides general information about using ROI, NPV, and DCF tools together. Your specific situation may require different considerations.
For ROI calculation, see our ROI Calculator.
For NPV calculation, see our Net Present Value Calculator.
For DCF valuation, see our DCF Calculator.
For investment triage, see our Investment Triage Framework Guide.
Consult with professionals for advice specific to your situation.
