• Perpetual in finance refers to a security that pays out an infinite cash flow.
  • In fact, this is an annuity without an end date.
  • The present value of a perpetual license is determined by simply dividing the amount of regular cash flows by the discount rate.
  • A growing perpetual asset includes growth rates that increase the cash flows received each period into the future.
  • Perpetual contracts are unusual financial products today, but the concept of perpetual contracts is important in finance nonetheless.