Vystar Corp (VYST)

[Renegades17]

I came up with similar numbers

The arithmetic is simple, the challenge is determining the right multiple and time required to ramp to the max production of 1500 units. Obviously, if they do produce 1500 units/week, that leads to some very big numbers in terms of revenue and profit (and they would likely generate greater than 25% net margin assuming some operating leverage). The margins on filters are likely to be significantly above the purifier units, but I don't believe they've provided guidance.

I think a 15 PE multiple is too low, but not trying to argue that point as you made an assumption. I would argue for a higher multiple based on the anticipated growth rate AND the opportunity to sell filters. This creates a long-tailed revenue stream of recurring revenue, which reduces risk (risk is another key variable in determining PE multiples).

All boils down to execution now from what I can tell. I think selling part of the business to a better capitalized third party makes sense at this juncture to ensure adequate funding to grow. I anticipate that the share price will settle somewhere in the range you outlined. It likely overshoots initially and then settles back.

Thanks for sharing your thoughts.