(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.
- 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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Syllabification: pres·ent val·ue
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