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

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

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

From Los Angeles Times ● Mar. 18, 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

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