Definition of present value in English:

present value

Syllabification: pres·ent val·ue
(also net present value)


  • The value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
    More example sentences
    • The fundamental value of a stock is of course in theory the present value of all future cash flows received by the owner of the stock.
    • Oil stocks are normally valued on the basis of the net present value of future cashflows.
    • It uses a discount rate of 7.5 per cent to calculate the present value of future earnings from its policies.

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Word of the day coloratura
Pronunciation: ˌkɒlərəˈtjʊərə
elaborate ornamentation of a vocal melody