future value

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Related to future value: Present value, Time value of money

Future value

The amount of cash at a specified date in the future that is equivalent in value to a specified sum today.

Future Value

The value of an asset or investment at a certain point in the future when its return is a known factor. That is, the future value of an investment is useful only when the security being measured has a fixed rate of return. Stocks are highly unlikely to be measured for future value because their returns are too volatile. The future value is used for bonds, interest-bearing accounts, certificates of deposit, and other, similar assets.

future value

The amount to which a specific sum or series of sums will grow on a given date in the future. The sums are assumed to earn an annual return that is related to the market rate of interest. For example, $1,000 has a future value of $1,120 in one year, assuming an annual return of 12%. Compare present value.
References in periodicals archive ?
The Future Value Map gives us a clear picture of our users' lifetime value potential, and allows us to conduct effective marketing campaigns using this segmentation.
We should treat this as an opportunity to urgently act through putting in practice new plans and strategies that better suit the changing needs of our consumers," said Nigel Bagley, director for Industry Affairs, Unilever, and co-chairman of 2020 Future Value Chain.
traditional IRAs that ignores capital gains taxes, and that uses a single interest rate to compute all present and future values, can be satisfactory.
For example, if the car is worth pounds 11,000 it may be given a future value of pounds 6,000 in two years,
We know there is a strong demand for small suburban office space that just isn't being met right now by the commercial real estate market," notes Mike Scott, Principal of Future Value Development Company.
Today, Veros announced that VeroFORECAST has been enhanced to deliver accurate predictions of future value according to property type, single-family or condominium properties, at the CBSA, county and ZIP code levels.
Dolgin added, "We received interest from movie and television studios, apartment converters and builders, museums and other parties who were placing bets on its future value based on the property's location, views, vast potential and the possibility of the 2012 Olympics coming here.
Balance sheets fail to reflect the major drivers of future value creation -- the research and product, process and software development that fuel high technology companies, and the brand value of leading consumer product companies.
The settlement also enables eligible policyholders to share in the future value of the company with the creditors, who currently have sole rights to future value.
Currently, with Home Properties' stock price at or below 90% of the midpoint of the company's published estimate of its net asset value range, re-purchasing shares is accretive and, we believe, will enhance future value for our shareholders.
But, because returns are headed down -- primarily due to today's lower interest rates -- it is more likely a policy's future value will be lower than projected, if interest rates stay low.
While a number of sophisticated valuation models have been developed, like the Black-Scholes model, none have proven to be reliable indicators of future value.

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