What is the 'Real Value'
The real value is nominal value adjusted for inflation. The real value is obtained by removing the effect of price level changes from the nominal value of timeseries data, so as to obtain a truer picture of economic trends. The nominal value of timeseries data such as gross domestic product and incomes is adjusted by a deflator to derive their real values.
BREAKING DOWN 'Real Value'
Real values are more important than nominal values for economic measures such as GDP and personal incomes because they help ascertain the extent to which increases over time are driven by inflation and what is driven by actual growth.
For example, if personal income is $50,000 year 1 and $52,000 in year 2, but the rate of inflation is 3%, then the nominal growth rate of income is 4%, while the real growth rate is 1%.
In the U.S., the Bureau of Economic Analysis maintains the GDP Deflator that is used to compute the real rate of economic growth. The Deflator uses 2005 as the base year, which means that it is set to 100 for 2005, with other years reported relative to the 2005 dollar.

Nominal Value
The stated value of an issued security. Nominal value in economics ... 
Nominal Interest Rate
The interest rate before taking inflation into account. The equation ... 
Real Interest Rate
An interest rate that has been adjusted to remove the effects ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Real Economic Growth Rate
A measure of economic growth from one period to another expressed ... 
Nominal
An unadjusted rate, value or change in value. This type of measure ...

Investing Basics
What is a Nominal Value?
The nominal value of a security, such as a stock or bond, remains fixed for the duration of its life. 
Professionals
Nominal vs. Real GDP, and the GDP Deflator
CFA Level 1  Nominal vs. Real GDP, and the GDP Deflator 
Investing Basics
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Economics
Understanding Interest Rates: Nominal, Real And Effective
Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan ... 
Economics
Calculating the GDP Price Deflator
The GDP price deflator adjusts gross domestic product by removing the effect of rising prices. It shows how much an economyâ€™s GDP is really growing. 
Retirement
Inflation: Inflation And Investments
When it comes to inflation, the question on many investors' minds is: "How will it affect my investments?" This is an especially important issue for people living on a fixed income, such as retirees. ... 
Economics
Nominal vs. Real GDP
GDP stands for gross domestic product and is the measure of the total economic output of the goods and services of a country. 
Economics
Understanding the Fisher Effect
The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. 
Economics
Explaining The World With Macroeconomic Analysis
Macroeconomists try to forecast economic conditions to help consumers, firms and governments make better decisions. 
Professionals
Weighted Average Cost of Capital: Applications & Example
Which discount rate must be used in valuing company projects? There can be different approaches in answering this question. One of the approaches is weighted average cost of capital (WACC). In ...

If markets give information on value through price, how can nominal values be out ...
Learn more about nominal values, real values and how these two measurements differ. Explore the impact of inflation and deflation ... Read Answer >> 
Is the nominal value of a security ever also the real value?
Learn more about nominal values and real values. Find out how these market values change and if they may ever converge for ... Read Answer >> 
Under what circumstances is the nominal value out of line with the real value of ...
Learn more about nominal stock values and market values. Explore causes of differences between nominal and real values for ... Read Answer >> 
How can you calculate the difference between nominal value and real value of stock ...
Explore the impact of real value and nominal value on stock trading. Find out how these values are assigned and what causes ... Read Answer >> 
What does it signify if there is a large discrepancy between a nation's real and ...
Discover the differences between real GDP and nominal GDP and what it means when there is a large discrepancy between the ... Read Answer >> 
Is the nominal value of GDP a sufficient metric for measuring the economy's health?
Find out whether the nominal value of gross domestic product is sufficient for measuring the health of an economy and how ... Read Answer >>