Joby Aviation (JOBY) stock is drawing attention after the company announced a partnership with Air Space Intelligence to integrate electric vertical takeoff and landing aircraft into the U.S. National Airspace System.

The partnership news comes as Joby’s share price, now at $9.14, sits after a 7 day share price return of 7.28% but a 90 day share price return of 37.91% decline, while the 1 year total shareholder return of 57.32% and 3 year total shareholder return of over 2x suggest investors who stayed the course have seen sizeable swings in sentiment around the eVTOL story.

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So with Joby trading at US$9.14, sitting at a discount to the average analyst price target yet coming off a sharp 90 day decline, is the recent pullback a fresh entry point, or is the market already pricing in future growth?

Most Popular Narrative: 25% Undervalued

At $9.14, the most followed narrative implies a fair value of $12.14, suggesting the market price sits below what that framework considers reasonable today.

The company is investing heavily ahead of broad commercial adoption, including scaling manufacturing with Toyota, building out facilities in Marina and Dayton, and preparing global operations. This could keep cash use high and delay earnings leverage if real air taxi demand or pricing power falls short of expectations, which could pressure future net margins.

Want to see what kind of growth backdrop sits behind this valuation gap? The narrative leans on rapid revenue expansion, future margin repair and a punchy profit multiple built into its discounted cash flow math.

Result: Fair Value of $12.14 (UNDERVALUED)

However, there are still a few watchpoints, including heavy upfront spending that keeps losses high and any delay in FAA certification, which could quickly challenge this undervalued story.

Next Steps

With sentiment clearly split between opportunity and caution, it makes sense to move fast and test the numbers for yourself rather than rely on headlines, starting with the 1 key reward and 2 important warning signs.

Looking for more investment ideas?

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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.