(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 centMore 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.
More definitions of present valueDefinition of present value in:
- The US English dictionary