Term of the Day: Present Value - PV

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	INVESTOPEDIA Term Of The Day October 14, 2015 Present Value - PV Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one. Also referred to as "discounted value". Breaking It Down: This sounds a bit confusing, but it really isn't. The basis is that receiving $1,000 now is worth more than... Read More Related to "Present Value - PV" Discounted Cash Flow Analysis It can be hard to understand how stock analysts come up with "fair value" for companies, or why their... Read More Understanding The Time Value Of Money Congratulations!!! You have won a cash prize! You have two payment options: A - Receive $10,000 now OR B - Receive $10,000 in three years... Read More Valuing A Stock With Supernormal Dividend Growth Rates Many formulas in investing are a little too simplistic given the constantly changing markets and... Read More Recently Added Definitions Maintenance Margin Maintenance margin is the minimum amount of equity that must be maintained in a... Read More Gross Profit A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a... Read More Related Definitions Internal Rate Of Return - IRR Equivalent Annual Annuity Approach - EAA Weighted Average Cost Of Capital - WACC Net Present Value - NPV Composite Cost Of Capital Past Terms of the Day Emergency Banking Act Of 1933 Ex Works (EXW) Letter of Intent - LOI Purchasing Power Real Estate Investment Trust - REIT You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: