Learn With ETMarkets: What is total shareholder return?

Total Shareholder Return (TSR) measures an investor's rate of return after buying a company's stock. It is calculated by adding a company's change in share price and total dividend earned during the investment period, and then dividing it by the share price at the beginning of the year. Net income growth, earnings per share (EPS), and price-to-earnings (PE) ratio are the drivers of TSR. However, cost-cutting, declining PE multiples, and dividend yield can impact TSR. It is vital to assess other stock ratios and factors beyond TSR to evaluate stocks better and identify promising investment opportunities.

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