Present value

Present value
The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. The New York Times Financial Glossary

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present value present value also present discounted value value1

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   The current value of a future cash flows, discounted at an appropriate interest rate. Cash earned in the future is worth less than cash earned immediately because today's cash can be invested and earn interest.

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present value UK US noun [C or U] (ABBREVIATION PV, also present discounted value)
ACCOUNTING the value today of an amount of money that you expect to receive in the future, considering the fact that a future payment is worth less than one received now: »

The gift, paid as an annuity, has a present value of $175 million.


The value of a company's shares should equal the discounted present value of its future profits.

See also NET PRESENT VALUE(Cf. ↑net present value)

Financial and business terms. 2012.

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Look at other dictionaries:

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