Discounting

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Dictionary Says

Definition of 'Discounting'

The process of determining the present value of a payment or a stream of payments that is to be received in the future. Given the time value of money, a dollar is worth more today than it would be worth tomorrow given its capacity to earn interest. Discounting is the method used to figure out how much these future payments are worth today.
Investopedia Says

Investopedia explains 'Discounting'

Discounting is one of the core principals of finance and is the primary factor used in pricing a stream of cash flows, such as those found in a traditional bond or annuity. For example, the succession of coupon payments found in a regular bond is discounted by a certain interest rate and summed together with the discounted par value to determine the bond's current value.

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'Discounting'

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    http://www.investopedia.com/articles/mortgage-real-estate/09/property-valuation-basics.asp
    ... NPV is the property value in today's dollars that will achieve the investor's risk
    adjusted return.The NPV is determined by discounting the periodic cash flow ...

  • How To Calculate Required Rate Of Return

    http://www.investopedia.com/articles/fundamental-analysis/11/calculating-required-rate-of-return.asp
    ... (For background reading, check out FYI On ROI: A Guide To Return On Investment.)
    TUTORIAL: Risk And Diversification Discounting Models One particularly ...

  • Sears Blue Crew's Blue Quarter

    http://stocks.investopedia.com/stock-analysis/2010/Sears-Blue-Crews-Blue-Quarter-SHLD-HD-LOW-M-KSS-TGT0527.aspx
    ... In addition, the retailer had to resort to deep discounting. Get Free Stock Analysis
    By Email. ... Costs from the discounting, Sears said, have already been booked. ...

  • Investors Blindly Selling Out Of Citigroup

    http://stocks.investopedia.com/stock-analysis/2011/Investors-Blindly-Selling-Out-Of-Citigroup-JPM-C-PNC-BBT-USB1020.aspx
    Citigroup's stock appears to be discounting investors' worse fears over its future. ...

  • How To Value A Real Estate Investment Property

    http://www.investopedia.com/articles/mortgages-real-estate/11/valuing-real-estate.asp
    ... Discounting future net operating income (NOI) by the appropriate discount rate for
    real estate is similar to discounted cash flow (DCF) valuations for stock ...

  • Valuing A Stock With Supernormal Dividend Growth Rates

    http://www.investopedia.com/articles/fundamental-analysis/11/supernormal-growth-analysis.asp
    ... It is based on discounting cash flows, and the purpose of the supernormal growth
    model is to value a stock which is expected to have higher than normal growth ...

  • Retail: The Good, The Bad And The Ugly

    http://stocks.investopedia.com/stock-analysis/2010/Retail-The-Good-The-Bad-And-The-Ugly-JWN-BKE-JCP-GPS-ANF0715.aspx
    ... stores sales up by 9%. Although any retailer would be proud of numbers like this,
    the report was tainted by accusations of heavy promotional discounting by the ...

  • Can Best Buy Find A Relevant Model?

    http://stocks.investopedia.com/stock-analysis/2012/Can-Best-Buy-Find-A-Relevant-Model-BBY-AMZN-WMT-IM0112.aspx
    ... So, once again the question arises as to whether Best Buy can drive sales without
    deep discounting and whether its business model can withstand high discounting ...

  • Valuation Of A Preferred Stock

    http://www.investopedia.com/articles/fundamental-analysis/11/valuation-prefered-stock.asp
    ... When an investment pays a steady stream of payments, like some bonds or annuities,
    the valuation can be completed by discounting each cash flow back to today. ...

  • Valuing Firms Using Present Value Of Free Cash Flows

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    When trying to evaluate a company, it always comes down to determining the
    value of the free cash flows and discounting them to today. ...

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