The problem is we do not know how much is "maintenance R & D" and how much is "growth R & D".
They have capitalised over $20m worth of intangibles on their balance sheet. Can a competitor replicate their software with $20m? I do not know, but I really doubt so.
The PE number is misleading, and cashflow multiple should be adjusted. After all that is done, I dont find compelling value. Might be on the cheap side, but not compelling.
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