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

Inflation is the enemy of bonds, as it erodes the present value of future coupon and maturity payments.

From Barron's

If you translate Social Security benefits into present value terms, the average retiree at age 65 had an annuity worth $305,000 in 2019, according to research by Yale University economist Natasha Sarin and two co-authors.

From The Wall Street Journal

The final payment of principal, if it happens, will be just 0.28% of the present value of all the payments Alphabet is promising on the bonds.

From The Wall Street Journal

A single male retiring in 2065 after a lifetime of average earnings at the bottom echelon, say $35,000 annually, would pay $291,000 in lifetime payroll taxes but collect $441,000 in lifetime benefits, calculated as the present value of taxes and benefits in 2025 dollars.

From Los Angeles Times

A lower discount rate also increases the present value of a company’s future cash flow, allowing it to fetch a higher valuation.

From MarketWatch