Archer Stock Valuation

ACHR
 Stock
  

USD 4.77  0.54  12.77%   

How much is Archer Aviation worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Archer Aviation, is its stock price multiplied by the total number of shares outstanding, calculating Archer Aviation's enterprise value requires a different approach. It uses Archer Aviation's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Archer Aviation Enterprise Value is relatively stable at the moment as compared to the past year. Archer Aviation reported last year Enterprise Value of 658.68 Million. As of 08/11/2022, Tangible Asset Value is likely to grow to about 828.5 M, while Free Cash Flow is likely to drop (114.8 M).
Archer Aviation shows a prevailing Real Value of $6.61 per share. The current price of the firm is $4.77. At this time, the firm appears to be undervalued. Our model approximates the value of Archer Aviation from analyzing the firm fundamentals such as current valuation of 296.03 M, and Return On Equity of (91.26) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Archer Aviation Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Archer Aviation's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Archer Most Recent Valuation Data

Price Book
1.57
EPS Estimate Next Quarter
-0.27
EBITDA
-394.3 M
Fiscal Year End
December
Industry
Aerospace & Defense
Enterprise Value
388 M
Listings
{}
Undervalued
Today 4.77
Please note that Archer Aviation's price fluctuation is relatively risky at this time. Calculation of the real value of Archer Aviation is based on 3 months time horizon. Increasing Archer Aviation's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Archer Aviation is useful when determining the fair value of the Archer stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Archer Aviation. Since Archer Aviation is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Archer Stock. However, Archer Aviation's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
6.61
Real Value
13.07
Upside
Estimating the potential upside or downside of Archer Aviation helps investors to forecast how Archer stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Archer Aviation more accurately as focusing exclusively on Archer Aviation's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
-1.94-1.94-1.94
Details
Hype
Prediction
LowEstimated ValueHigh
0.203.9610.42
Details
Naive
Forecast
LowNext ValueHigh
0.083.9610.42
Details
2 Analysts
Consensus
LowTarget PriceHigh
14.0014.5015.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Archer Aviation's intrinsic value based on its ongoing forecasts of Archer Aviation's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Archer Aviation's closest peers. When choosing an evaluation method for Archer Aviation, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Archer Valuation Drivers Correlation

Many accounts on the financial statements of Archer Aviation are highly interrelated and sometimes correlated. Consequently, when conducting Archer's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Archer
Click cells to compare fundamentals

Archer Valuation Trend

Knowing Archer Aviation's actual value is paramount for traders to make sound investment determinations. Archer Aviation's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Archer Aviation's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Archer Aviation's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Archer Market Cap

Archer Aviation is number one stock in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is presently estimated at about 4.09 Trillion. Archer Aviation adds roughly 1.08 Billion in market capitalization claiming only tiny portion of stocks in Aerospace & Defense industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Archer Aviation Total Value Analysis

Archer Aviation is presently forecasted to have valuation of 296.03 M with market capitalization of 1.08 B, debt of 28.9 M, and cash on hands of 704.2 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Archer Aviation fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
296.03 M1.08 B28.9 M704.2 M

Archer Aviation Asset Utilization

One of the ways to look at asset utilization of Archer is to check how much profit was generated for every dollar of assets it reports. Archer Aviation shows a negative utilization of assets of -64.42 percent, losing $0.64 for each dollar of assets held by the firm. Unsuccessful asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Archer Aviation shows how unproductive it operates for each dollar spent on its assets.

Archer Aviation Ownership Allocation (%)

Archer Aviation holds a total of one hundred fifty-seven million two hundred seventy thousand outstanding shares. Archer Aviation retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
   Ownership %   
       Values  

Archer Aviation Profitability Analysis

Net Loss for the year was (312.1 M).
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Archer Aviation's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Archer Aviation and how it compares across the competition.

About Archer Aviation Valuation

The equity valuation mechanism determines the current worth of Archer Aviation on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Archer Aviation. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Archer Aviation based exclusively on its fundamental and basic technical indicators. By analyzing Archer Aviation's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Archer Aviation's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Archer Aviation. We calculate exposure to Archer Aviation's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Archer Aviation's related companies.
Fiscal Year End
December
Industry
Aerospace & Defense
Full Time Employees
209.0
Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California. Archer Aviation operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 209 people.

Archer Aviation Quarterly Enterprise Value

406.37 Million

Archer Aviation Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Archer Aviation does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio20.53
Enterprise Value To Ebitda-0.75

Archer Aviation Current Valuation Indicators

Valuation refers to the process of determining the present value of Archer Aviation and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Archer we look at many different elements of the entity such as Archer's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Archer Aviation's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Archer Aviation's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Archer Aviation, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Archer Aviation's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Archer Aviation's worth.
Please continue to Trending Equities. Note that the Archer Aviation information on this page should be used as a complementary analysis to other Archer Aviation's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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When running Archer Aviation price analysis, check to measure Archer Aviation's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Archer Aviation is operating at the current time. Most of Archer Aviation's value examination focuses on studying past and present price action to predict the probability of Archer Aviation's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Archer Aviation's price. Additionally, you may evaluate how the addition of Archer Aviation to your portfolios can decrease your overall portfolio volatility.
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Is Archer Aviation's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archer Aviation. If investors know Archer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archer Aviation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.1 B
Return On Assets
-0.64
Return On Equity
-0.91
The market value of Archer Aviation is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Aviation's value that differs from its market value or its book value, called intrinsic value, which is Archer Aviation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archer Aviation's market value can be influenced by many factors that don't directly affect Archer Aviation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archer Aviation's value and its price as these two are different measures arrived at by different means. Investors typically determine Archer Aviation value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Aviation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.