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present value

British  

noun

  1. the current capital value of a future income or outlay or of a series of such incomes or outlays. It is computed by the process of discounting at a predetermined rate of interest

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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Higher inflation means that those future earnings must be discounted to a much greater extent when calculating their present value.

From MarketWatch Jun. 29, 2026

Higher interest rates make the debt more expensive and gut the present value of cash that may not arrive until later down the line.

From Barron's Jun. 6, 2026

Adjustments for capital expenditure, a new mine schedule and higher operating costs drive a A$5.1 billion—or 55%—reduction in the net present value Macquarie attributes to the project.

From The Wall Street Journal May 1, 2026

The present value of Pizarro’s pension is more than $19 million, the report said.

From Los Angeles Times Mar. 18, 2026

For example, one can calculate the probability that the universe is expanding at nearly the same rate in all different directions at a time when the density of the universe has its present value.

From "A Brief History of Time: And Other Essays" by Stephen Hawking

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