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.

Definition of present value in: