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

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Example Sentences

See Examples For:

present value

The single biggest driver was a $553 billion actuarial gain, meaning the present value of promises owed to employees had declined.

From The Wall Street Journal ● Sep. 4, 2026

Discounting those cash flows back to present value yields a valuation of $896 per share.

From MarketWatch ● Aug. 31, 2026

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

When Treasury yields rise, the discount rate goes up, which lowers the present value of those expected future cash flows.

From Barron's ● May 19, 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