A DMM will only get you so far as you really need to be able to test not only the frequency of the signal (something I don't believe Toyota has a specification for) but also the amplitude of the square wave which can be affected by dirt, debris, broken tone rings, damaged sensor, ect.
They don't seem to go bad too often, but that doesn't mean they can't fail. I would do the simple tests of voltage, continuity, and check connections; but really you can't test much more than that (you could see if the computer sees a signal from the sensor if you had a compatible scantool I suppose.) A member had made a thread about resistance being a possible way to test them (based on old vs. new part replacement they did) but without a large enough sample pool, it'd be more of a novelty.