A Look at New Horizon Aircraft (HOVR) Valuation Following Pratt & Whitney Partnership and Prototype Milestones

New Horizon Aircraft (NasdaqCM:HOVR) is making headlines after announcing a partnership and purchase agreement with Pratt & Whitney Canada for the PT6A engine, which is set to power its Cavorite X7 hybrid eVTOL aircraft. The deal marks meaningful progress on prototype development and signals the company’s commitment to delivering practical innovation in advanced air mobility.

See our latest analysis for New Horizon Aircraft.

Shares of New Horizon Aircraft have soared in 2025, supercharged by news of successful prototype flights and its recent partnership with Pratt & Whitney Canada. While short-term momentum has seen sharp swings, including a one-day share price return of -6.73% but a year-to-date leap of 166.97%, the real standout is the company’s 1-year total shareholder return of over 700%, underscoring growing optimism about its progress in advanced air mobility.

If you're tracking innovation in the skies, it's a great moment to discover See the full list for free.

With shares already delivering eye-catching gains, the key question for investors is whether New Horizon Aircraft remains undervalued after its rapid ascent or if soaring expectations mean future growth is already priced in.

Price-to-Book of 36.8x: Is it justified?

New Horizon Aircraft currently trades at a strikingly high price-to-book ratio of 36.8x. This level suggests the market is pricing in extraordinary growth or future profitability. For comparison, the last close price was $2.91 and the company is pre-revenue. This makes the multiple exceptionally elevated relative to both the company’s fundamentals and typical industry norms.

The price-to-book ratio compares a company’s market value to its net assets, providing a rough gauge of investor confidence in underlying business value. In sectors like Aerospace and Defense, a high multiple often signals strong future expectations or hype, especially for businesses not yet generating material revenue or profits.

With New Horizon Aircraft’s ratio well above the US Aerospace & Defense industry average of just 3.4x, this premium appears difficult to justify on financial grounds alone. The valuation reflects more optimism and potential future wins than concrete results. This dynamic is common among early-stage companies disrupting the market narrative with innovation stories or high-profile partnerships.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 36.8x (OVERVALUED)

However, risks such as delayed revenue generation or execution challenges could quickly temper enthusiasm if anticipated growth does not materialize as investors hope.

Find out about the key risks to this New Horizon Aircraft narrative.

Build Your Own New Horizon Aircraft Narrative

If our perspective doesn’t match yours, or if you want to dive deeper into the numbers and shape your own story, you can easily craft your own narrative in just a few minutes: Do it your way

A great starting point for your New Horizon Aircraft research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.

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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.

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