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Total Shareholder Return explained

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TSR

Total Shareholder Return

TSR

 

 

Formula / calculation

 

(Share Price EndOfPeriod - Share Price BeginOfPeriod) + Dividents) / Share Price BeginOfPeriod = Total Shareholder Return (TSR).

 

Note: dividends include not only regular dividend payments, but also any cash payments to shareholders and also include special or one-time dividends and also include share buybacks.

 

Description TSR Explained

 

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.

 

Due to its nature, TSR can not be calculated at divisional level (Strategic Business Unit) and below.

 

And also due to its nature, TSR cannot be observed for privately held companies.

 

TSR can be easily compared from company to company, and benchmarked against industry or market returns, without having to worry about size bias (Total Shareholder Return (TSR) is a percentage).

 

Compare also: Market Value Added  |  Economic Value Added  |  CFROI  |  EBIT  |  EBITDA  |  Cash Ratio  |  Current Ratio  |  Return on Equity  |  Fair Value  |  TSR  |  P/E Ratio  |  Economic Margin

 

More valuation methodologies

 

 

Category

Financial Value

Market-Based

Expressed as a percentage

model, method

Economic Profit (indirect)

 

 

 


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