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 present value of $175 million.
The value of a company's shares should equal the discounted present value of its future profits.

(Definition of “present value” from the Cambridge Business English Dictionary © Cambridge University Press)