Definition of present value in English:

present value

Line breaks: pres|ent value
(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: £110 due in 12 months' time has a present value of £100 today, if invested at an annual rate of 10 per cent
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: