VBM logo

Calculating Stockholder Earnings

share this page

Articles  |  Books  |  Dictionary  |  Faq  |  Home  |  Leaders  |  Organizations  |  Search


Total Shareholder Return (TSR)

Summary of Total Shareholder Return. Abstract

 

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.


What is TSR? Explanation

 

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 (TSR is a percentage).

 

👀TIP: On this website you can find much more about Total Shareholder Return!


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)



About us | Advertise | Privacy | Support us | Terms of Service

©2023 Value Based Management.net - All names tm by their owners