* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Net Present Value


NPV is the summation of all of the discounted cash flows in the future plus a terminal value of the company. It is the net after time-value-of-money discounting has happened for what the company should be trading for (its valuation) today.