present value of earnings

简明释义

收益现值

英英释义

The present value of earnings refers to the current worth of a stream of future earnings, discounted back to the present using a specific interest rate or discount rate.

收益的现值是指未来收益流的当前价值,通过使用特定的利率或折现率将其折算回现在的价值。

例句

1.A higher present value of earnings 收益的现值 indicates a more valuable company in the eyes of investors.

较高的收益的现值 present value of earnings在投资者眼中表明公司更有价值。

2.When valuing a startup, it is crucial to estimate the present value of earnings 收益的现值 over the next five years.

在对初创企业进行估值时,估算未来五年的收益的现值 present value of earnings是至关重要的。

3.Investors often calculate the present value of earnings 收益的现值 to assess the profitability of a business.

投资者通常计算收益的现值 present value of earnings来评估企业的盈利能力。

4.To make informed investment decisions, you should always consider the present value of earnings 收益的现值 alongside other financial metrics.

为了做出明智的投资决策,您应该始终将收益的现值 present value of earnings与其他财务指标一起考虑。

5.The financial analyst used a discount rate to determine the present value of earnings 收益的现值 for the upcoming fiscal year.

财务分析师使用折现率来确定即将到来的财政年度的收益的现值 present value of earnings

作文

Understanding the concept of present value of earnings is crucial for anyone involved in finance or investment. The present value of earnings refers to the current worth of a stream of future earnings, discounted back to the present using a specific interest rate. This concept is fundamental because it allows investors and analysts to assess the true value of an investment by considering the time value of money. In other words, a dollar earned today is worth more than a dollar earned in the future due to its potential earning capacity. To better grasp the significance of present value of earnings, let’s consider a practical example. Suppose you are evaluating a company that is expected to generate $1 million in profits annually for the next five years. If we assume a discount rate of 10%, the present value of earnings can be calculated to determine what those future earnings are worth today. Using the formula for present value, which is: PV = FV / (1 + r)^n where PV is present value, FV is future value, r is the discount rate, and n is the number of years, we can calculate the present value of each year’s earnings. For the first year, the calculation would be: PV = $1,000,000 / (1 + 0.10)^1 = $909,090.91 For the second year: PV = $1,000,000 / (1 + 0.10)^2 = $826,446.28 Continuing this process for five years, we would sum all the present values to find the total present value of earnings. This total gives investors a clearer picture of the company's worth based on its future profitability. Moreover, understanding the present value of earnings is not only essential for individual investments but also for broader economic analysis. Businesses often use this metric to make strategic decisions, such as whether to invest in new projects or expand operations. By accurately calculating the present value of earnings, companies can ensure that they are making informed choices that will maximize their financial returns. In addition, the present value of earnings plays a vital role in mergers and acquisitions. When one company considers acquiring another, it must assess the target company's future earnings potential. By calculating the present value of earnings, the acquiring company can determine a fair price to pay, ensuring that the investment will yield positive returns in the long run. In conclusion, the present value of earnings is a powerful tool in finance that helps individuals and businesses gauge the value of future earnings. It incorporates the time value of money, enabling more accurate assessments of investments. As we navigate the complexities of financial markets, having a solid understanding of the present value of earnings will undoubtedly enhance our decision-making capabilities and investment strategies. By mastering this concept, we can better position ourselves to achieve financial success and make informed choices that align with our long-term goals.

理解收益的现值这一概念对于任何参与金融或投资的人来说都是至关重要的。收益的现值是指未来收益流的当前价值,使用特定的利率折现回现在。这个概念是基础,因为它使投资者和分析师能够通过考虑货币的时间价值来评估投资的真实价值。换句话说,今天获得的一美元比未来获得的一美元更有价值,因为它具有潜在的盈利能力。为了更好地理解收益的现值的重要性,让我们考虑一个实际的例子。假设您正在评估一家预计在未来五年内每年产生100万美元利润的公司。如果我们假设折现率为10%,则可以计算出收益的现值以确定这些未来收益今天的价值。使用现值的公式,即:PV = FV / (1 + r)^n其中PV是现值,FV是未来价值,r是折现率,n是年份,我们可以计算每年收益的现值。对于第一年,计算如下:PV = $1,000,000 / (1 + 0.10)^1 = $909,090.91对于第二年:PV = $1,000,000 / (1 + 0.10)^2 = $826,446.28继续这一过程五年,我们将所有现值相加,以找到总的收益的现值。这个总额为投资者提供了一个更清晰的公司价值图景,基于其未来的盈利能力。此外,理解收益的现值不仅对个人投资至关重要,对于更广泛的经济分析也是如此。企业通常使用这一指标来做出战略决策,例如是否投资新项目或扩展业务。通过准确计算收益的现值,公司可以确保他们做出明智的选择,以最大化财务回报。此外,收益的现值在并购中也起着至关重要的作用。当一家公司考虑收购另一家公司时,必须评估目标公司的未来收益潜力。通过计算收益的现值,收购公司可以确定一个公平的支付价格,确保投资将在长期内产生积极的回报。总之,收益的现值是金融领域的一个强大工具,帮助个人和企业评估未来收益的价值。它融入了货币的时间价值,使投资评估更加准确。在我们应对金融市场的复杂性时,深入理解收益的现值无疑会增强我们的决策能力和投资策略。通过掌握这一概念,我们可以更好地为实现财务成功做好准备,并做出与我们的长期目标相一致的明智选择。