VersaBank Valuation

Q: What is the Fair Price of VBNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

VBNK (CA$17.5) is trading above our estimate of [[fair value]] (CA$15.52)

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

Valuation Score

3/6

Valuation Score 3/6

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$17.5) is trading above our estimate of fair value (CA$15.52)

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?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VBNK. This is calculated by dividing VBNK's market cap by their current preferred multiple.
What is VBNK's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CA$462.69m

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/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?

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.1x
EQB EQB	8.5x	0.6%	CA$3.7b
CWB Canadian Western Bank	15.6x	5.0%	CA$4.9b
TCBX Third Coast Bancshares	10.9x	11.7%	US$346.3m
OBT Orange County Bancorp	9.6x	-4.1%	US$331.0m
VBNK VersaBank	9.9x	24.4%	CA$462.7m

Price-To-Earnings vs Peers: VBNK is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	8.6%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	8.6%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: VBNK is good value based on its Price-To-Earnings Ratio (9.9x) compared to the North American Banks industry average (11.6x).

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 Ratio	9.9x
Fair PE Ratio	12.1x

Price-To-Earnings vs Fair Ratio: VBNK is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$17.50	CA$19.75 +12.9%	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	n/a	2
Oct ’24	CA$10.65	CA$14.75 +38.5%	5.1%	CA$15.50	CA$14.00	n/a	2
Sep ’24	CA$11.54	CA$14.75 +27.8%	5.1%	CA$15.50	CA$14.00	n/a	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.