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 Due to the Town’s conservative assumption for future pension asset investment returns, the Town’s Consulting Actuary projects that the Town can save over $140 million in future pension costs on a present value basis., 9 July 2021 Cytokinetics uses an abnormally high 9% discount rate, which lowers the present value of reported leases. David Trainer, Forbes, 7 June 2021 Thus, on a present value basis the value may not be substantial. Martin Shenkman, Forbes, 6 June 2021 Or, what is all the same thing, the present value of future policy-holder claims to be paid, plus the insurer’s profit. George Calhoun, Forbes, 26 May 2021 Exxon discloses the present value of future cash inflows from sales of oil, future production costs, future development costs and future tax expenses. Shivaram Rajgopal, Forbes, 12 Apr. 2021 With the prospect of future income tax increases, the present value of paying income taxes today may be superior to the normal strategy of saving through tax deferral. Steve Parrish, Forbes, 12 Apr. 2021 The proxy filing cites the present value of Tilden’s retirement package as $5.4 million. Author: Dominic Gates, Anchorage Daily News, 31 Mar. 2021 Here’s a quick explanation from my Meanwhile in Markets newsletter: At the most fundamental level, a stock’s value is the present value of all the money the company will make in its lifetime. Dan Runkevicius, Forbes, 19 Mar. 2021

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.

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First Known Use of present value

1831, in the meaning defined above

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The first known use of present value was in 1831

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present value

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Last Updated

20 Jul 2021

Cite this Entry

“Present value.” Dictionary, Merriam-Webster, Accessed 31 Jul. 2021.

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