Analyst estimates versus reality, page-3

I think its difficult to value PYG on ebitda multiples. One look at the last annual report reveals why...while ebitda may be 1.7m, cashflow is barely positive only because of government grants which are 1.3m. trade payables are about 2x trade receivables even after you subtract the 8.8m clients money that PYG holds for wages. to me that says they strategically delay paying to make reports look better. WSJ indicates gross margin is only 18%.. PYG spends 3m annually on investing into software development which seems a tad high when most of the software they have they don't own. i wonder if the annual report can provide some answers.

ebitda valuation on tech is really not the right way.