VersaBank Valuation
Is VBNK undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of VBNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: VBNK (CA$23.7) is trading above our estimate of fair value (CA$21.25)
Significantly Below Fair Value: VBNK is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for VBNK?
Key metric: As VBNK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is VBNK's PE Ratio? | |
|---|---|
| PE Ratio | 13.5x |
| Earnings | CA$45.72m |
| Market Cap | CA$616.26m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | n/a |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | 0.4x |
Price to Earnings Ratio vs Peers
How does VBNK's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 11x | ||
EQB EQB | 9.7x | 8.6% | CA$4.2b |
CWB Canadian Western Bank | 20.5x | 13.8% | CA$5.8b |
7184 First Bank Of Toyama | 5.4x | n/a | JP¥69.6b |
MORG Sparebanken Møre | 8.3x | 11.4% | NOK 4.6b |
VBNK VersaBank | 13.5x | 30.4% | CA$616.3m |
Price-To-Earnings vs Peers: VBNK is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (11x).
Price to Earnings Ratio vs Industry
How does VBNK's PE Ratio compare vs other companies in the North American Banks Industry?
| 4 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 4 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: VBNK is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the North American Banks industry average (13.2x).
Price to Earnings Ratio vs Fair Ratio
What is VBNK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 13.5x |
| Fair PE Ratio | 14.9x |
Price-To-Earnings vs Fair Ratio: VBNK is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | CA$23.70 | CA$24.24 +2.3% | 19.2% | CA$30.71 | CA$20.00 | n/a | 3 |
| Nov ’25 | CA$21.25 | CA$22.10 +4.0% | 7.9% | CA$24.29 | CA$20.00 | n/a | 3 |
| Oct ’25 | CA$17.80 | CA$22.10 +24.1% | 7.9% | CA$24.29 | CA$20.00 | n/a | 3 |
| Sep ’25 | CA$18.12 | CA$19.75 +9.0% | 11.4% | CA$22.00 | CA$17.50 | n/a | 2 |
| Jun ’25 | CA$13.25 | CA$17.75 +34.0% | 1.4% | CA$18.00 | CA$17.50 | n/a | 2 |
| May ’25 | CA$13.54 | CA$17.75 +31.1% | 1.4% | CA$18.00 | CA$17.50 | n/a | 2 |
| Apr ’25 | CA$14.06 | CA$17.75 +26.2% | 1.4% | CA$18.00 | CA$17.50 | n/a | 2 |
| Mar ’25 | CA$15.98 | CA$16.50 +3.3% | 3.0% | CA$17.00 | CA$16.00 | n/a | 2 |
| Feb ’25 | CA$14.94 | CA$15.50 +3.7% | 3.2% | CA$16.00 | CA$15.00 | n/a | 2 |
| Jan ’25 | CA$14.54 | CA$15.50 +6.6% | 3.2% | CA$16.00 | CA$15.00 | n/a | 2 |
| Dec ’24 | CA$10.61 | CA$14.75 +39.0% | 5.1% | CA$15.50 | CA$14.00 | n/a | 2 |
| Nov ’24 | CA$10.86 | CA$14.75 +35.8% | 5.1% | CA$15.50 | CA$14.00 | CA$21.25 | 2 |
| Oct ’24 | CA$10.65 | CA$14.75 +38.5% | 5.1% | CA$15.50 | CA$14.00 | CA$17.80 | 2 |
| Sep ’24 | CA$11.54 | CA$14.75 +27.8% | 5.1% | CA$15.50 | CA$14.00 | CA$18.12 | 2 |
| Aug ’24 | CA$11.33 | CA$14.75 +30.2% | 5.1% | CA$15.50 | CA$14.00 | CA$16.14 | 2 |
| Jul ’24 | CA$10.00 | CA$14.75 +47.5% | 5.1% | CA$15.50 | CA$14.00 | CA$14.73 | 2 |
| Jun ’24 | CA$9.39 | CA$14.25 +51.8% | 8.8% | CA$15.50 | CA$13.00 | CA$13.25 | 2 |
| May ’24 | CA$9.90 | CA$14.25 +43.9% | 8.8% | CA$15.50 | CA$13.00 | CA$13.54 | 2 |
| Apr ’24 | CA$10.00 | CA$14.25 +42.5% | 8.8% | CA$15.50 | CA$13.00 | CA$14.06 | 2 |
| Mar ’24 | CA$10.15 | CA$13.25 +30.5% | 9.4% | CA$14.50 | CA$12.00 | CA$15.98 | 2 |
| Feb ’24 | CA$10.45 | CA$13.25 +26.8% | 9.4% | CA$14.50 | CA$12.00 | CA$14.94 | 2 |
| Jan ’24 | CA$10.11 | CA$13.25 +31.1% | 9.4% | CA$14.50 | CA$12.00 | CA$14.54 | 2 |
| Dec ’23 | CA$9.01 | CA$13.75 +52.7% | 12.7% | CA$15.50 | CA$12.00 | CA$10.61 | 2 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Citigroup
US$133.2b
A diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide.
CITI
US$29.78
7D
1.5%
1Y
51.2%
Bank of America
US$360.6b
Through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
BOFA
US$24.49
7D
0.5%
1Y
54.4%
National Bank of Canada
CA$46.9b
Provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally.
NA
CA$137.81
7D
3.1%
1Y
52.8%