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Profitability Index
PI
The ratio of the present value of future cashflows to the initial investment. A PI above 1 means the project creates value.
Why it matters
PI helps compare projects of different sizes — it shows value created per euro invested, not just absolute profit.
In Profivo
Profivo surfaces NPV-related metrics so you can judge a project's efficiency relative to the capital invested.
Formula
PI = PV of future cashflows / Initial investment