- GAAP-based financial statements included in company annual, interim and quarterly reports are increasingly becoming less relevant than "unofficial" non-GAAP/IFRS metrics.
- In this course, we use real-life examples to walk through the challenges and lesser-understood nuances of accurately normalizing historical results and forecasts.
- We discuss the mechanics and concepts required to correctly adjust operating and valuation models as well as common pitfalls associated with tax adjustments, share count adjustments and forecasting non-GAAP items in integrated financial statement models.
Interpreting Non-GAAP Reports
Learn how to interpret non-GAAP disclosures and model their impact on historical results, forecasts and valuation. Designed for investment bankers as well as equity research and credit analysts.
Why you should take this course
Who is this program for?
This course is designed for professionals and those pursing a career in the following finance careers:
- Investment Banking
- Buy-Side Equity Research
- Sell-Side Equity Research
- Private Equity
- Credit Research
- FP&A and Corporate Finance
Wall Street Prep’s Interpreting Non-GAAP Reports is used at top financial institutions and business schools.
The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
Taught by bankers
Our instructors are former I-bankers who give lessons real-world context by connecting it to their experience on the desk.
Used on the Street
This is the same comprehensive course our corporate clients use to prepare their analysts and associates.
1.5x, 2x video speed
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Have a question on course content? Communicate directly with instructors by asking questions throughout the course.
Full Course Agenda
- Non-GAAP items overview
- Why Non-GAAP?
- What Non-GAAP disclosures look like
- Why firms are motivated to show Non-GAAP
- Prevalence of non-GAAP disclosures
- Regulatory oversight of non-GAAP
- Two broad types of non-GAAP items
- Nonrecurring items under GAAP
- Unusual or infrequent items under GAAP
- Non-GAAP nonrecurring items
- Normalizing GAAP financials
- Normalizing GAAP financials, II
- Non-GAAP impact on valuation
- Too many non-recurring items?
- Nonrecurring items disclosures in practice
- Income statement classification
- Stock based compensation (SBC)
- Argument for & against adding back SBC
- Normalizing for SBC, exercise I
- SBC disclosures in practice
- Normalizing for SBC, exercise II
- Amortization of capitalized SBC
- Noncash items overview
- Acquired intangibles exercise
- Introduction to EBITDA
- EBITDA and Adjusted EBITDA exercises
- Determining Athena's historical EBITDA
- Forecasting EBITDA
- ATHN bottom up EBITDA, exercise I
- The problem with the bottom up approach
- ATHN bottom up EBITDA exercise II
- ATHN EBITDA solution walk through
- Top down EBITDA forecasting
- Non-IFRS disclosures in practice
- Non-GAAP issues in a 3-statement model
- Non-GAAP diluted share count
- Non-GAAP Items Conclusion
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