Non-GAAP Measures

Valuation & Fundamentals

Figures that start from results under US accounting standards (GAAP) and adjust them by removing or adding items the company chooses; adjusted EPS is the most common example.

Stock-based compensation, restructuring costs and one-time items are the usual exclusions. The SEC requires companies to present the most directly comparable GAAP figure alongside, with a reconciliation explaining the difference. Analyst estimates are often built on the adjusted numbers, but many of the excluded costs are real costs.

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