Formula and Example of TSR Calculation




Total Shareholder Return
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Jaap de Jonge
Editor, Netherlands

Formula and Example of TSR Calculation

Suppose a stock has a share value at the beginning of a year of 250. At the end of the year the share is worth 295. During the year the company also pays a 5 dividend per share. The company does no stock buyback during the year.
The TSR of this company can be calculated using the following formula:

TSR formula

TSR = ( [current price - purchase price] + [dividends + any other payout like from a stock buyback] / purchase price )
So TSR = ( [295 - 250] + [5 + 0] / 250
or
TSR = (45 + 5) / 250 = 0.2

Convert TSR into a Percentage

TSR is normally shown as a percentage. To get a percentage we have to convert the result of the previous formula by simply multiplying it by 100.
So then the TSR becomes: 0.2 x 100 = 20%.

   

More on Total Shareholder Return:
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🔥Core Operating Shareholder Return (COSR)
Dividends in Total Shareholder Return
👀Formula and Example of TSR Calculation
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