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

The same mechanics are largely at work in the stock market, as well, where a higher “risk free” rate, which is used to price the present value of future company profits, pushes equity prices lower.

From Barron's • Mar. 20, 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

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

From Los Angeles Times • Mar. 18, 2026

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 • Feb. 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