present value


Definition of present value

: the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date

Examples of present value in a Sentence

Recent Examples on the Web First, investors might want a fatter return than 7.5% for the high-risk of owning Twitter, meaning its present value isn't really $41 billion but less. Shawn Tully, Fortune, 21 May 2022 By my back of the envelope calculation, the deal could generate a positive net present value of $4.4 billion. Peter Cohan, Forbes, 19 Jan. 2022 Goldman Sachs analysts, led by David J. Kostin, also argued that dividend stocks may present value moving forward in a Monday note to clients. Will Daniel, Fortune, 13 June 2022 That’s more like $20 million based on the value of today’s dollars, a calculation known as net present value. Brian Amaral,, 1 Aug. 2022 Growth stocks in particular can get hit from higher yields as their present value is largely determined by growth expectations, which shrinks when calculated with a higher interest rate. Anna Hirtenstein, WSJ, 7 Feb. 2022 Higher rates reduce the present value of future corporate profits, from which stocks ultimately derive their worth. Mark Zandi For Cnn Business Perspectives, CNN, 20 July 2022 The price of the bond will be equal to the present value of the payment. Rick Miller, Forbes, 27 June 2022 Second, once again, Twitter would only merit to a present value of $41 billion if all of those aspirational assumptions somehow materialize. Shawn Tully, Fortune, 21 May 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'present value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of present value

1831, in the meaning defined above

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Time Traveler for present value

Time Traveler

The first known use of present value was in 1831

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Dictionary Entries Near present value

present tense

present value

present writer

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Statistics for present value

Last Updated

18 Sep 2022

Cite this Entry

“Present value.” Dictionary, Merriam-Webster, Accessed 26 Sep. 2022.

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