Export Options:
Fundamental
Net Present Value (NPV)
PV of cash inflows minus PV of outflows using a discount rate
Definition
NPV calculates the present value of future cash flows minus initial investment. Positive NPV indicates value creation. Formula: NPV = Σ [Cash Flow / (1+r)^t] - Initial Investment.
Related Topics
#capital budgeting
#present value
#discounting
#value creation
Quick Actions
Related Terms
Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
View all Fundamental terms →