**Net present value (NPV)** is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. NPV is the result of calculations used to find today’s value of a future stream of payments. **Source**: <https://www.investopedia.com/terms/n/npv.asp> > [!important] Valuations for Biotech > Many Biotech companies have no revenues, and valuations may be determined by some propriety model. > > See [Net present value approaches for drug discovery](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3622797/)