| || InvestHub.com's |
Finance Dictionary and Glossary of Investment Terms
he rate of interest used to calculate the present value of a number of future payments.
According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate.
The discount rate used to determine the present value of a stream of future earnings. Equals normalized earnings after taxes divided by present value, expressed as a percentage.