What is Total Shareholder Return? Description
Total Shareholder Return (TSR) represents the change in capital value of
a listed/quoted company over a period (typically 1 year or longer), plus dividends,
expressed as a plus or minus percentage of the opening value.
Calculation of Total Shareholder Return. Formula
(Share Price at the end of the period - Share Price at the beginning of
the period + Dividends) / Share Price at the beginning of the period = Total
Shareholder Return.
Note: dividends include not only regular dividend payments, but also include
any cash payments to shareholders, and also include special or one-time dividends,
and also include share buybacks.
TSR can be easily compared from company to company, and benchmarked against
industry or market returns, without having to worry about a bias regarding
size. Because Total Shareholder Return is a percentage.
Limitations of Total Shareholder Return
As a result of its nature, TSR can not be calculated at divisional level
(Strategic Business Unit) and below. And also as a result of its nature, TSR
can not be observed for privately held companies.
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Total Shareholder Return Special Interest Group
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Special Interest Group (10 members)
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Recent topics
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 Dividends in Total Shareholder Return
Should in the formula "dividends" be read as "dividends per share at the beginning of the period" or with "dividends per share at the end of the perio...
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Compare also: Market Value Added |
Economic Value Added |
CFROI |
EBIT |
EBITDA |
Cash Ratio |
Current Ratio |
Return on Equity |
Fair Value |
P/E Ratio |
PEG Ratio |
Economic Margin
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