Discount rate

Search for glossary terms (regular expression allowed)


Term Definition
Discount rate

An imaginary interest rate, most often equal to the long-term historical return of the stock market, which is used to calculate how much a dollar amount in the future is worth in today's money. This is the minimum return you would have to earn to justify stock picking over investing in an index fund.

Author - Nick Kraakman
Hits - 359
Value Investing Bootcamp - Online Investment Course