The Present Value or "PV Function" in Excel helps the user determine the current value of a financial asset. For instance, analysts can value a stock by forecasting its future profits, or cash flows, and discounting them back to today to get a current, or present value, for the stock. If it differs much from the value listed in the stock market, it may be either a buy or a sell.
Let's look at an example. Assume a company earns a profit of $100,000 annually over a period of 10 years. The "Type" is a "1" or "0" and details whether the earnings would occur at the beginning of each year, or end of each year, respectively. If an analyst has a price target of $100 per share, or a $1 million firm value assuming 10,000 shares outstanding, then the estimated present value of the stock is $29.04. If the current market price is above this level, the stock would not be worth buying. If it traded at less than $29 per share, then it would be worth an investment, based off of the inputs the analysts used in his analysis.
FV Function
You may have already noticed that the Future Value or "FV Function" in Excel was part of the discussion for the analyst valuing the stock, above. If we keep all of the variables the same, but assume we know the current firm value is $350,000, or $35 per share, then the future value of the stock in 10 years would be $84.53 per share. Here is what the inputs would look like:
Guide To Excel For Finance: HLookup And VLookup

Investing
Time Value Of Money: Determining Your Future Worth
Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation. 
Small Business
Calculating Net Present Value at Different Points Using Excel
Calculating the net present value (NPV) of your investment projects using Excel. 
Investing
Understanding the Time Value of Money
Find out why time really is money by learning to calculate present and future value. 
Financial Advisor
Value Investing Strategies in a Volatile Market
Volatile markets are a scary time for uneducated investors, but value investors use volatile periods as an opportunity to buy stocks at a discount. 
Investing
The Difference Between Enterprise Value and Equity Value
Enterprise value calculates a businessâ€™s current value, while equity value offers a snapshot of that businessâ€™s current and potential future value. 
Investing
Explaining Market Value of Equity
Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time. 
Investing
Market Value Versus Book Value
Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze a company for investment. 
Investing
Calculating the Present Value of an Annuity
The present value of an annuity is the current, lump sum value of periodic future payments as calculated using a specific rate. 
Investing
What Is The Value In Value Investing?
Value investing has its advantages, but it also has significant drawbacks. We look at the pros and cons. 
Investing
Cheap Stocks Or Value Traps?
The value of stocks that trade at less than cash per share can be deceiving.