You can do this, but it will only be valid at the operating point produced by your multimeter.
The multimeter will apply a small, regulated voltage to the circuit through a resistance which varies in value depending on the scale in use. The voltage across this resistor is measured with an ADC and the resistance of the attached resistor can be computed from this reading. For my Fluke meter, the resistance mode has the following characteristics:
which shows that the MOSFET will see a \$V_{DS}\$ of less than 550 mV (how much less depends on the result) and a current of less than 1 mA (again, how much less depends on the result). If you have a second meter, you can use it to measure the voltage and current being applied. If these values are the same as your target application, it will work. They're likely not.
In the cutoff region, where \$V_{GS} < V_{th}\$, the resistance is very high and more closely related to \$V_{GS}\$ and \$V_{th}\$ than \$V_{DS}\$. Your multimeter will not produce a good reading in this region simply because the answer is probably greater than the maximum resistance that your meter can display.
In the saturation region, where \$V_{GS} > V_{th} \$ and \$V_{DS} > ( V_{GS} – V_{th} ) \$, the current is the approximately the same regardless of the applied voltage. Again, the multimeter won't do a very good job in this state for two reasons: First, it's nonlinear, and second, it's very low but requires a high \$V_{DS}\$. Unless you're using cheap or old MOSFETs and an overzealous multimeter, you won't get accurate results here.
However, in the triode or linear region, where \$V_{GS} > V_{th} \$ and \$V_{DS} < ( V_{GS} – V_{th} )\$, the MOSFET will behave mostly like a resistor and have a resistance in the range which your meter can measure. I say mostly because it gradually transitions into the saturation region; as \$V_{DS}\$ approaches \$ V_{GS} – V_{th} \$ it becomes more and more nonlinear. You should get good results here, but you won't know without testing with another multimeter whether you're in this region. At that point, you may as well set up a curve tracer if you've got an old HP4151B or something similar in the lab. If not, a crude, manual curve tracer can be constructed from a function generator that sweeps through a voltage range, a sense resistor, and an oscilloscope which monitors the current through the sense resistor on one channel and the output voltage on another.
In conclusion, the multimeter is only useful in the triode region and even then it's better to use a curve tracer.