Total Shareholder Return (TSR)

Total shareholder return (TSR) is a measure of the performance of a company's stock over a period of time. It is calculated by taking the total return on the stock (including dividends) and adding the change in the stock price.

TSR is a more comprehensive measure of performance than the simple return on investment (ROI), because it takes into account both the change in the stock price and the dividends paid. It is also a more accurate measure of performance than the price-to-earnings ratio (P/E ratio), because it takes into account the time value of money.

TSR is often used to compare the performance of different companies or to track the performance of a single company over time. It can also be used to evaluate the performance of a portfolio of stocks.

There are a few things to keep in mind when using TSR. First, TSR is a backward-looking measure of performance. It does not take into account future expectations for the company. Second, TSR can be affected by factors outside of the company's control, such as economic conditions or political events. Third, TSR can be difficult to calculate for companies that do not pay dividends.

Despite these limitations, TSR is a valuable tool for evaluating the performance of a company's stock. It is a comprehensive measure of performance that takes into account both the change in the stock price and the dividends paid. TSR can be used to compare the performance of different companies or to track the performance of a single company over time. It can also be used to evaluate the performance of a portfolio of stocks.