discount rate
noun
1
: the interest on an annual basis deducted in advance on a loan
2
: the charge levied by a central bank for advances and rediscounts
Examples of discount rate in a Sentence
Recent Examples on the Web
Lower rates are typically beneficial for growth sectors including technology, which have higher earning potential in outer years, as lower discount rates boost the present value of future earnings.
—
Trefis Team, Forbes, 14 Oct. 2024
Stock prices are an attempt to estimate the present value of future profits — and the lower interest rates go in the future, the lower the discount rate used to value them, and the more those profits are worth today.
—Felix Salmon, Axios, 19 Sep. 2024
Equity duration is a measure of how sensitive a stock’s cash flows are to changes in the discount rate.
—Yun Li, CNBC, 16 Sep. 2024
For example, Too Good To Go uses AI to help grocers identify goods nearing expiration, estimate how likely the product is to sell and recommend discount rates.
—Lindsey Mazza, Forbes, 6 Sep. 2024
See all Example Sentences for discount rate 
Trefis Team, Forbes, 14 Oct. 2024
Stock prices are an attempt to estimate the present value of future profits — and the lower interest rates go in the future, the lower the discount rate used to value them, and the more those profits are worth today.
—Felix Salmon, Axios, 19 Sep. 2024
Equity duration is a measure of how sensitive a stock’s cash flows are to changes in the discount rate.
—Yun Li, CNBC, 16 Sep. 2024
For example, Too Good To Go uses AI to help grocers identify goods nearing expiration, estimate how likely the product is to sell and recommend discount rates.
—Lindsey Mazza, Forbes, 6 Sep. 2024
See all Example Sentences for discount rate
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'discount rate.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 5 Nov. 2024.
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