Before we get into the valuation details for Archer Aviation, here are a few key points to frame the story.

• If you are wondering whether Archer Aviation’s current share price reflects its true worth, it helps to step back and look at both the recent returns and how fair value is being assessed.
• The stock closed at US$6.43 recently, with a 4.9% decline over the past week, a 12.8% decline over the past month, a 20.9% decline year to date, and a 14.0% decline over the past year. The 3 year return sits at a very large gain and the 5 year return at a 38.4% decline.
• Recent headlines around Archer Aviation have focused on its position in the emerging electric air taxi space and ongoing progress toward commercial operations, which has kept…