Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

The market price of a stock doesn't necessarily reflect its intrinsic value. Several economic theories use different approaches toward valuing companies, but one of the simplest involves calculations ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Suzanne is a content marketer, writer, and ...