VersaBank

NasdaqGS:VBNK Stock Report

Market Cap: US$446.0m

VersaBank Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($13.57) is trading below our estimate of fair value ($36.23)

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

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.

The above table shows the Price to Earnings ratio for VBNK. This is calculated by dividing VBNK's market cap by their current earnings.
What is VBNK's PE Ratio?
PE Ratio16.3x
EarningsCA$38.76m
Market CapCA$641.46m

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
TCBX Third Coast Bancshares
11.4x11.5%US$441.8m
SCZC West Coast Community Bancorp
12.5xn/aUS$432.7m
BSVN Bank7
11.3x0.4%US$405.5m
SMMF Summit Financial Group
6.6x1.5%US$377.4m
VBNK VersaBank
16.3x45.3%US$641.5m

Price-To-Earnings vs Peers: VBNK is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
VBNK 16.3xIndustry Avg. 12.2xNo. of Companies89PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VBNK is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the US Banks industry average (12.2x).

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.

VBNK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: VBNK is good value based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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
CurrentUS$13.57
US$19.98
+47.2%
5.9%US$21.63US$18.98n/a3
Jan ’26US$13.85
US$19.98
+44.3%
5.9%US$21.63US$18.98n/a3
Dec ’25US$17.99
US$17.35
-3.5%
19.3%US$22.02US$14.31n/a3
Nov ’25US$15.22
US$16.35
+7.4%
7.9%US$17.97US$14.80n/a3
Oct ’25US$13.28
US$16.35
+23.1%
7.9%US$17.97US$14.80n/a3
Sep ’25US$13.50
US$14.69
+8.8%
11.4%US$16.36US$13.02n/a2
Jun ’25US$9.71
US$13.13
+35.2%
1.4%US$13.32US$12.95n/a2
May ’25US$9.88
US$13.13
+32.9%
1.4%US$13.32US$12.95n/a2
Apr ’25US$10.38
US$13.13
+26.5%
1.4%US$13.32US$12.95n/a2
Mar ’25US$11.75
US$12.27
+4.4%
3.0%US$12.64US$11.90n/a2
Feb ’25US$11.18
US$11.56
+3.4%
3.2%US$11.94US$11.19n/a2
Jan ’25US$10.95
US$11.56
+5.6%
3.2%US$11.94US$11.19US$13.852
Dec ’24US$7.92
US$10.90
+37.6%
5.1%US$11.45US$10.34US$17.992
Nov ’24US$7.80
US$10.90
+39.7%
5.1%US$11.45US$10.34US$15.222
Oct ’24US$7.86
US$10.90
+38.8%
5.1%US$11.45US$10.34US$13.282
Sep ’24US$8.64
US$10.90
+26.1%
5.1%US$11.45US$10.34US$13.502
Aug ’24US$8.52
US$11.03
+29.4%
5.1%US$11.59US$10.47US$11.522
Jul ’24US$7.58
US$11.03
+45.5%
5.1%US$11.59US$10.47US$10.552
Jun ’24US$7.02
US$10.30
+46.7%
8.8%US$11.21US$9.40US$9.712
May ’24US$7.32
US$10.30
+40.7%
8.8%US$11.21US$9.40US$9.882
Apr ’24US$7.37
US$10.30
+39.8%
8.8%US$11.21US$9.40US$10.382
Mar ’24US$7.46
US$9.77
+31.0%
9.4%US$10.70US$8.85US$11.752
Feb ’24US$7.72
US$9.77
+26.6%
9.4%US$10.70US$8.85US$11.182
Jan ’24US$7.53
US$9.77
+29.9%
9.4%US$10.70US$8.85US$10.952

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 00:31
End of Day Share Price 2025/01/08 00:00
Earnings2024/10/31
Annual Earnings2024/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

VersaBank is covered by 6 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Trevor ReynoldsAcumen Capital Finance Partners Limited
Dylan SteuartiA Capital Markets
Timothy SwitzerKeefe, Bruyette, & Woods