present value Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “present value” in the English Dictionary

"present value" in Business English

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present valuenoun [C or U]

uk   us   ( abbreviation PV, also present discounted value)
ACCOUNTING the ​value today of an ​amount of ​money that you expect to receive in the future, considering the fact that a future ​payment is ​worth less than one received now: The ​gift, ​paid as an ​annuity, has a ​presentvalue of $175 million. The ​value of a company's ​shares should ​equal the discountedpresentvalue of its future ​profits.
(Definition of present value from the Cambridge Business English Dictionary © Cambridge University Press)
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