We’ve recently updated our valuation analysis.

VersaBank Valuation

Is VBNK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VBNK?

Other financial metrics that can be useful for relative valuation.

VBNK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does VBNK's PE Ratio compare to its peers?

The above table shows the PE ratio for VBNK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.9x
CWB Canadian Western Bank
8.4x6.5%CA$2.6b
FC Firm Capital Mortgage Investment
13xn/aCA$416.2m
AI Atrium Mortgage Investment
11x-1.7%CA$481.0m
MKP MCAN Mortgage
11.2x27.0%CA$530.7m
VBNK VersaBank
13x33.0%CA$281.3m

Price-To-Earnings vs Peers: VBNK is expensive based on its Price-To-Earnings Ratio (13x) compared to the peer average (10.9x).


Price to Earnings Ratio vs Industry

How does VBNK's PE Ratio compare vs other companies in the North American Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.3%
n/an/an/a

Price-To-Earnings vs Industry: VBNK is expensive based on its Price-To-Earnings Ratio (13x) compared to the North American Banks industry average (9.8x)


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.

VBNK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: VBNK is expensive based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


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$10.33) is trading below our estimate of fair value (CA$13.62)

Significantly Below Fair Value: VBNK is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VBNK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$10.33
CA$13.25
+28.3%
9.4%CA$14.50CA$12.00n/a2
Jan ’24CA$10.11
CA$13.25
+31.1%
9.4%CA$14.50CA$12.00n/a2
Dec ’23CA$9.01
CA$13.75
+52.7%
12.7%CA$15.50CA$12.00n/a2
Nov ’23CA$9.31
CA$16.00
+71.9%
0%CA$16.00CA$16.00n/a1
Oct ’23CA$9.69
CA$16.00
+65.1%
0%CA$16.00CA$16.00n/a1
Sep ’23CA$9.70
CA$18.50
+90.7%
0%CA$18.50CA$18.50n/a1
Aug ’23CA$9.42
CA$18.50
+96.4%
0%CA$18.50CA$18.50n/a1
Jul ’23CA$9.44
CA$18.50
+96.0%
0%CA$18.50CA$18.50n/a1
Jun ’23CA$10.69
CA$19.50
+82.4%
0%CA$19.50CA$19.50n/a1
May ’23CA$13.02
CA$19.50
+49.8%
0%CA$19.50CA$19.50n/a1
Apr ’23CA$14.95
CA$19.50
+30.4%
0%CA$19.50CA$19.50n/a1
Mar ’23CA$14.51
CA$19.75
+36.1%
1.3%CA$20.00CA$19.50n/a2
Feb ’23CA$14.58
CA$19.75
+35.5%
1.3%CA$20.00CA$19.50n/a2
Jan ’23CA$15.06
CA$19.75
+31.1%
1.3%CA$20.00CA$19.50CA$10.112
Dec ’22CA$15.98
CA$19.75
+23.6%
1.3%CA$20.00CA$19.50CA$9.012
Nov ’22CA$14.84
CA$19.75
+33.1%
1.3%CA$20.00CA$19.50CA$9.312
Oct ’22CA$13.94
CA$19.75
+41.7%
1.3%CA$20.00CA$19.50CA$9.692
Sep ’22CA$13.30
CA$19.75
+48.5%
1.3%CA$20.00CA$19.50CA$9.702
Aug ’22CA$13.30
CA$19.75
+48.5%
1.3%CA$20.00CA$19.50CA$9.422
Jul ’22CA$14.88
CA$19.75
+32.7%
1.3%CA$20.00CA$19.50CA$9.442
Jun ’22CA$14.19
CA$19.75
+39.2%
1.3%CA$20.00CA$19.50CA$10.692
May ’22CA$15.03
CA$19.75
+31.4%
1.3%CA$20.00CA$19.50CA$13.022
Apr ’22CA$15.35
CA$19.75
+28.7%
1.3%CA$20.00CA$19.50CA$14.952
Mar ’22CA$15.78
CA$20.00
+26.7%
0%CA$20.00CA$20.00CA$14.511

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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