Present value (PV) is calculated by discounting the future value by the estimated rate of return that the money could earn if ...
A discount rate is a percentage rate that investors use to measure the value of future cash flows in today's dollars. A discount rate has a wide variety of applications in terms of analyzing ...
Requiring that the value of discounted cash earnings is near the Net Asset Value explains why REITs are generally priced near NAV. It makes sense for the market to assign less value to future growth ...