To truly calculate the total return of an investment, you must include the CGY or CGL and dividend yield. Many brokerages will provide the CGY and total return on investment for the stocks you hold.

This makes it a good choice for learning how to calculate expected total returns. With that said, this method can be applied to any stock investment.

Business valuation is easy with this method. Looking at the market value of a firm's equity lets you compare the relative sizes of different companies more easily.