present value

British

noun

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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Only then can we calculate a fair present value.

From Barron's • Apr. 10, 2026

In financial market arithmetic, a higher risk-free interest rate lowers the present value of future profits, the most basic component of stock prices, and holds down gains for broader indexes as a result.

From Barron's • Mar. 20, 2026

If I have a 1 in 6.5 billion chance of winning it, that has a present value of about 7.7 cents — call it just under 8 cents — per bet.

From MarketWatch • Mar. 18, 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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023