Total shareholder return (TSR) is a metric that measures the total gain or loss for shareholders who own a company's stock. It's calculated by adding the capital gains from price increases to the dividends paid out. TSR is expressed as an annualized percentage.
How is TSR calculated?
- Opening share price: The initial value of the shares
- Dividends: The amount of dividends paid out to shareholders
- Capital gains: The increase in the value of the shares
- Capital returned: Any amount returned to shareholders
- Capital paid in: Any additional amount paid in by shareholders
- Closing share price: The final value of the shares

Pros
Simple to calculate, easy to understand
More complete evaluation of investment's worth
Easy to compare to other companies or benchmarks
Good gauge of long-term performance

Cons
Limited to past performance, no sense of future returns
Sensitive to stock market performance, like nearly any metric
Doesn't reflect size of investment