What is VYST's Intrinsic value?

Vystar Corp (VYST) Intrinsic Value Analysis

Executive Summary

As of May 28, 2025, Vystar Corp's estimated intrinsic value ranges from $1.40 to $1.40 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $1.40 +1650.5%

Is Vystar Corp (VYST) undervalued or overvalued?

With the current market price at $0.08, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Vystar Corp's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

The cost of capital is a critical factor in valuation models, representing the required return for investors.

WACC Component Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.24 0.32
Cost of equity 5.0% 6.7%
Cost of debt 4.0% 7.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.59 0.59
After-tax WACC 4.2% 6.1%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 5.8%
  • Long-term growth rate: 3.5%
  • Fair value: $-0.61 (-860.6% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 6.7% (Low) to 5.0% (High)
  • Long-term growth rate: 3.0% (Low) to 4.0% (High)
  • Fair value range: $0 to $2
  • Selected fair value: $1.40 (1650.5% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $2M
Enterprise Value $3M
Trailing P/E 3.12
Forward P/E 3.12
Trailing EV/EBITDA 5.00
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.59

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Dividend Discount Model (Stable) 100% $0.21
Weighted Average 100% $1.40

Investment Conclusion

Based on our comprehensive valuation analysis, Vystar Corp's weighted average intrinsic value is $1.40, which is approximately 1650.5% above the current market price of $0.08.

Key investment considerations:

  • Strong projected earnings growth (-1230% to -52% margin)
  • Consistent cash flow generation

Given these factors, we believe Vystar Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.