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Wondering whether Archer Aviation at around US$6.93 a share offers good value, or if the recent story is already in the price? This article will help you frame that question clearly.
The stock has had a mixed run, with a 2.4% gain over the past week, a 19.5% decline over the last 30 days, a 14.8% decline year to date, a 24.1% decline over 1 year, and a very large 3 year return relative to its starting point.
These swings sit against a broader backdrop for electric vertical takeoff and landing, or eVTOL, companies. Investor attention often tracks progress on funding, certification milestones, and commercial partnerships. For Archer, the news flow around its aircraft development and sector peers has kept sentiment active, even when the share price has pulled back.
Our Simply Wall St valuation checks currently give Archer Aviation a valuation score of 4 out of 6. This suggests several measures point to potential undervaluation. Next we will look at what different valuation approaches say about the stock, before finishing with a broader framework that can help you judge value more confidently.
Find out why Archer Aviation’s -24.1% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today’s dollars, aiming to show what the whole business might be worth right now.
For Archer Aviation, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is a loss of about $481.4 million. Analysts provide specific free cash flow estimates out to 2029, and Simply Wall St then extends these to 2035. Within that projection, 2026 and 2027 are also loss making on a free cash flow basis, while 2028 turns positive at $17.5 million. By 2030, projected free cash flow reaches $829 million, with later years extrapolated rather than directly forecast by analysts.
When all those projected cash flows are discounted back to today, the DCF model arrives at an estimated intrinsic value of about $87.80 per share. Versus the recent share price around $6.93, this implies the stock is 92.1% undervalued on this set of assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Archer Aviation is undervalued by 92.1%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks.
Story Continues
ACHR Discounted Cash Flow as at Feb 2026
For companies that are still loss making, earnings-based measures like the P/E ratio are less helpful, so price relative to book value often gives a cleaner reference point. The P/B ratio compares the market value of the equity to the accounting value of net assets on the balance sheet.
What investors usually pay per dollar of book value depends on their expectations for future growth and the risks they see. Higher expected growth or stronger profitability can justify a higher “normal” P/B, while higher risk or weaker profitability usually points to a lower one.
Archer Aviation currently trades on a P/B of 3.07x. That sits below the Aerospace & Defense industry average of 4.13x and below the peer group average of 4.61x. This comparison might suggest a discount relative to those simple benchmarks.
Simply Wall St’s Fair Ratio is a proprietary estimate of what the P/B ratio could be for Archer, after taking into account factors like earnings growth expectations, industry, profit margins, market cap and specific risks. Because it adjusts for these company-level traits, it can be more informative than a basic comparison with industry or peers alone.
In this case, the Fair Ratio is not available, so we cannot conclude whether the current P/B of 3.07x points to Archer being overvalued, undervalued or about right.
Result: ABOUT RIGHT
NYSE:ACHR P/B Ratio as at Feb 2026
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Earlier we mentioned that there is an even better way to think about valuation. Let us introduce Narratives, which are simply your story about Archer Aviation linked to your own assumptions for future revenue, earnings and margins. These are then translated into a fair value you can compare with the current share price to help you decide whether the stock looks attractive or not. All of this is available within an easy tool on Simply Wall St’s Community page that updates when new news or earnings arrive. One Archer investor might plug in strong revenue growth expectations and a higher profit margin to arrive at a much higher fair value, while another uses more conservative inputs and ends up with a much lower fair value. This shows how different views on the same company can lead to very different conclusions about value.
Do you think there’s more to the story for Archer Aviation? Head over to our Community to see what others are saying!
NYSE:ACHR 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ACHR.
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