Vystar Corp (VYST)

[stervc]

Key Point #2**The Immediate .67+ & .26+ Valuations

I have seen where some had posted where Rotmans generates between $50 to $100 Million in Revenues. I was told by the company that such was not true. The company told me that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The company informed me that all the conversions have been completed and that the Outstanding Shares (OS) should be somewhere below 500 million shares. From my conversation, the company believes that the Price to Earnings (PE) Ratio is higher than 20 for its growth rate, but I will use 20 to remain conservative. From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:

Gross Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .48 Net Profit Margin = $16,800,000 Net Income

$16,800,000 Gross Income ÷ 500,000,000 (OS) = .0336 EPS

.0336 EPS x 20 PE Ratio = .672 Per Share Gross Value


Net Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income

$6,650,000 Net Income ÷ 500,000,000 (OS) = .0133 EPS

.0133 EPS x 20 PE Ratio = .266 Per Share Net Value

The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for the VYST.

v/r
Sterling