present value

noun

: 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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Seattle and Las Vegas remain the odds-on favorites, and the price tag is likely to hit $6 billion, although it could be structured where the net present value is lower. Kurt Badenhausen, Sportico.com, 16 Oct. 2025 In terms of present value, Schwarber sticks out as a priority. Jackson Roberts, MSNBC Newsweek, 12 Sep. 2025 These stocks could present value with greater upside potential in the long run. Trefis Team, Forbes.com, 22 Aug. 2025 Future earnings have a higher present value at a lower rate because they are discounted back at a lower rate. Zev Fima, CNBC, 21 Aug. 2025 See All Example Sentences for present value

Word History

First Known Use

1831, in the meaning defined above

Time Traveler
The first known use of present value was in 1831

Browse Nearby Words

Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 18 Oct. 2025.

More from Merriam-Webster on present value

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!