• Total Shareholder Return (TSR) is a measure of financial performance showing the total amount that an investor receives from an investment, specifically shares or stocks.

  • Total shareholder return factors in capital gains and dividends when measuring the total return generated by shares.
  • TSR calculation formula: {(current price - purchase price) + dividends} ÷ purchase price.
  • TSR is an easily understood figure of the total financial benefits received by shareholders.
  • TSR is a good indicator of the long-term value of an investment, but it is limited to past performance, requires investment to generate cash flow, and can be sensitive to stock market volatility.