Log in
Log inBook a demo

Interpreting Non-GAAP Reports

COURSE
Wall Street Prep
3 hrs

Interpreting Non-GAAP Reports

COURSE
Wall Street Prep
3 hrs
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry for free
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry for free

Course Overview 

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 both historical results and forecasts. We discuss the mechanics and concepts required for correctly adjusting operating models 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.

Instructor - Matan Feldman 

Matan Feldman is Wall Street Prep’s Founder and Managing Partner. His responsibilities include business development, development of courses, and overseeing training programs. Matan has overseen training programs for clients including Morgan Stanley, Credit Suisse, Raymond James, Stifel Nicolaus, FBR Capital Markets, Sagent Advisors, Giuliani Capital Advisors, JP Morgan, Cerberus, Wharton Business School, London Business School, Kellogg, Booth, Stern (NYU), and Cornell. Prior to founding Wall Street Prep, Matan served in several capacities on Wall Street — first as an Analyst in Chase Manhattan Bank's Mergers & Acquisitions Group in New York, and subsequently as an Associate within JP Morgan's Equity Research Group, covering Food & Drug Retail Equities.

Learning
CHAPTER 1: INTRODUCTION TO NON-GAAP ITEMS
Non-GAAP Items Overviewvideo • 1 min
Why Non-GAAP?video • 3 mins
What Non-GAAP Disclosures Look Likevideo • 4 mins
Why Firms are motivated to show non-GAAPvideo • 1 min
Prevalence of non-GAAP disclosuresvideo • 5 mins
Regulatory oversight of non-GAAPvideo • 2 mins
Two broad types of non-GAAP itemsvideo • 1 min
CHAPTER 2: NONRECURRING ITEMS
Nonrecurring items under GAAPvideo • 4 mins
Unusual or infrequent items under GAAPvideo • 4 mins
Non-GAAP nonrecurring itemsvideo • 4 mins
Normalizing GAAP financialsvideo • 7 mins
Normalizing GAAP financials, IIvideo • 4 mins
Non-GAAP impact on valuationvideo • 3 mins
Too many non-recurring items?video • 3 mins
Nonrecurring items disclosures in practicevideo • 3 mins
Income statement classificationvideo • 3 mins
CHAPTER 3: NONCASH ITEMS — STOCK BASED COMPENSATION
Introduction to non-cash itemsvideo • 2 mins
Argument for & against adding back SBCvideo • 8 mins
Stock based compensation (SBC) reviewvideo • 3 mins
Normalizing for SBC, exercise Ivideo • 5 mins
SBC disclosures in practicevideo • 4 mins
Normalizing for SBC, exercise IIvideo • 8 mins
Amortization of capitalized SBCvideo • 3 mins
CHAPTER 4: NONCASH ITEMS — INTANGIBLE ASSET AMORTIZATION
Noncash items overviewvideo • 5 mins
Acquired intangibles exercisevideo • 4 mins
CHAPTER 5: HISTORICAL EBITDA
Introduction to EBITDAvideo • 5 mins
EBITDA and Adjusted EBITDA exercisesvideo • 6 mins
Determining Athena's historical EBITDAvideo • 7 mins
CHAPTER 6: FORECASTING EBITDA
Forecasting EBITDAvideo • 2 mins
ATHN bottom up EBITDA, exercise Ivideo • 7 mins
The problem with the bottom up approachvideo • 3 mins
ATHN bottom up EBITDA exercise IIvideo • 5 mins
ATHN EBITDA solution walk throughvideo • 15 mins
Top down EBITDA forecastingvideo • 8 mins
CHAPTER 7: OTHER NON-GAAP TOPICS
Non-IFRS disclosures in practicevideo • 10 mins
Non-GAAP issues in a 3-statement modelvideo • 7 mins
Non-GAAP diluted share countvideo • 12 mins
Non-GAAP Items Conclusionvideo • 12 mins
Supplementary Materials
Step by Step Course Manualdocument
Supporting Documents Kittext