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Data-driven stock valuation

VersaBank (VBNK) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of VersaBank stock $8.30, price $22.95, that is 63.8% below the price, quality 53 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.

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Financial Services US · Home Canada · ISIN CA92512J1066

V VersaBank logo Broad data Nov 5, 2026

VersaBank

VBNK · US
Solid, but very expensive

Our calculation puts a fair price 64% below what the stock costs today.

Highly profitable · 23.1% net margin (TTM)
0.1% dividend yield · Low payout
Broad data
Last quarter vs. a year ago: revenue +28%, profit +55%.
Quality 53/100
Expensive Growth (revenue YoY +7.7 %/yr in USD)
Moderate moat 56/100 · thin data
Fair value $8.30 · Strongly overvalued (−63.8%)
Trails peers (2/13)
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$23.72 $6.27 Fair Value $8.30 Mar 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.

How to read this chart

60‑month range $6.27 – $23.72 · fair‑value band $6.33 – $10.55 · the $22.95 price screens above the $8.30 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.

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Company profile

VersaBank provides various banking products and services in Canada and the United States. The company operates through Digital Banking Canada; Digital Banking USA; and DRTC (cybersecurity services and banking and financial technology development) segments.

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It offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products.

The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial real estate mortgages and loans, public sector, leases, and other financing.

In addition, it provides cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

Stock analysis

VersaBank (VBNK) currently trades at $22.95, while our model-based Fair Value estimate is $8.30, 64% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of $8.34 per share, and 0 of the 6 models we run sit above the $22.95 price.

Bear case: the Dividend Discount group reads lowest at $0.9200, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.

Scenario range: $6.33 (bear) to $10.55 (bull), the price of $22.95 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 53/100 (solid quality), in the Financial Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

VersaBank reported revenue of C$120M in FY2025 versus C$94.7M in FY2021, a compound +6.2%/yr. Reported net income was C$28.5M in FY2025, compounding +6.2%/yr from FY2021.

Key figures

Market cap $774M Small · P/E ratio 30.2 · P/S ratio 7.15 · EPS (TTM) $0.7600 · Dividend yield 0.1% · Net margin 23.7% · Return on equity 6.2% · Return on assets (EBIT) 1.1% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (low confidence).

What moves the price

The share trades about 3% below its 52-week high and 104% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −64%, VBNK screens richer than that median.

Fair Value models

Bear $6.33 Fair Value $8.30 Bull $10.55
Price $22.95 · Downside -63.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.7350 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income $8.38 $8.20 $8.56 74
Gordon GGM $0.5400 $0.9600 $1.31 66
DDM Multi-Stage $0.5400 $0.8800 $1.03 65
All 6 models by family
Dividend Discount
Gordon GGM $0.5400 $0.9600 $1.31 66
DDM Multi-Stage $0.5400 $0.8800 $1.03 65
Multiples
P/E Multiple $6.06 $8.08 $10.10 63
P/B Multiple $6.45 $8.59 $10.74 55
Asset-Based
NCAV (Graham) $5.57 $7.46 $11.13 54
Economic Profit
Residual Income $8.38 $8.20 $8.56 74

Open the full fair value analysis →

Quality Score breakdown

Overall quality 53/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 31
How much profit the company makes from its sales and capital
Quality Growth 38
Are margins and returns getting better?
Cashflow 68
Do the profits arrive as real cash?
Financial strength 33
Debt, balance sheet and risk of trouble
Investment 42
Does it invest with discipline instead of growing at any price?
Low Volatility 53
How calm the share price moves, does not count
Price momentum 80
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 97
Distance to the 52-week high, does not count
New shares 100
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 48/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−1.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−1.1%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−1.1% vs 7.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.31% → 35%
Pace: the 5-year rate starts in 2020 (pandemic)

VBNK screens overvalued: fair value 64% below the price. Compare with China Merchants Bank Co →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 998 stocks

Beats the industry median on 2/13 measures
Overall it trails its industry peers.
Valuation
Quality Score 53 · Below median
Fair Value upside −63.8% · Bottom 25%
Profitability
Return on equity (12 months) 6.2% · Bottom 25%
Return on assets 0.5% · Bottom 25%
Net margin (12 months) 23.1% · Below median
Operating margin (12 months) 35.5% · Below median
Growth and dividend
Revenue growth (quarter YoY) 28.4% · Top 25%
Dividend yield (12 months) 0.1% · Bottom 25%
Balance sheet
Debt / equity 0.19× · Below median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (12 months) 30.2× · Priciest 25%
P/B 2.05× · Priciest 25%
P/S (12 months) 7.47× · Priciest 25%
EV/EBITDA 13.8× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 8
FUTURE (revenue growth)100 · sector 47
PAST (return on equity)25 · sector 43
HEALTH (low debt)–
DIVIDEND (yield)2 · sector 53

VALUE 0: the price sits above our fair-value range.

HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Postal Savings Bank of China Co 601658 ¥5.53 ¥7.59 +37% vs VBNK
China Merchants Bank Co 600036 ¥42.88 ¥52.73 +23% vs VBNK
BNP Paribas SA BNP €91.93 €106.01 +15% vs VBNK
Intesa Sanpaolo S.p.A ISP €6.18 €4.49 −27% vs VBNK
State Bank of India SBIN ₹1,019 ₹736.65 −28% vs VBNK
UniCredit S.p.A UCG €76.80 €50.44 −34% vs VBNK
Mizuho Financial Group MFG $9.40 $5.90 −37% vs VBNK
DBS Group D05 69.72 SGD 40.39 SGD −42% vs VBNK
HDFC Bank Limited HDFCBANK ₹788.25 ₹406.39 −48% vs VBNK
ICICI Bank Limited ICICIBANK ₹1,571 ₹615.63 −61% vs VBNK

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VersaBank: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "VersaBank Fair Value". https://www.fairvalue-calculator.com/stock/VBNK

Frequently asked questions

Is VersaBank (VBNK) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $8.30 versus a price of $22.95, about 64% lower (overvalued).
What is the fair value of VBNK?
Our model-based fair value for VersaBank is $8.30 (as of Nov 5, 2026), built from audited fundamentals. The current price: $22.95.
What is the quality score of VBNK?
VersaBank has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for VersaBank (VBNK)?
Our model-based price target is the fair value of $8.30 (as of Nov 5, 2026) from 6 valuation models. Cautious scenario $6.33, optimistic scenario $10.55. It is a calculation from audited fundamentals, not an analyst target.
What is the VersaBank stock forecast for 2026?
Our models put fair value at $8.30, about 64% lower versus a price of $22.95 (overvalued). Cautious scenario $6.33, optimistic scenario $10.55. The calculation is refreshed regularly with new filings.
What is the revenue of VersaBank (VBNK)?
VersaBank reported trailing-twelve-month revenue of about C$146M (latest available figure, as of Nov 5, 2026).
Does VersaBank pay a dividend?
VersaBank currently shows a dividend yield of 0.11% relative to its recent price (as of Nov 5, 2026).
How much is the dividend of VersaBank (VBNK) and when is the ex-dividend date?
VersaBank pays a dividend of $0.025 per share a year, a dividend yield of 0.1%. The last ex-dividend date was Oct 9, 2026. A dividend has been paid every year since at least 2018. The payout ratio is 11.4% of earnings. Our assessment: Low payout. A low payout ratio: the dividend takes at most 60 % of earnings. Whether free cash flow covers it as well, we cannot see for this company.
What is the intrinsic value of VersaBank (VBNK)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For VersaBank it is $8.30 per share (as of Nov 5, 2026), against a price of $22.95. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is VersaBank stock overvalued or undervalued in 2026?
As of Nov 5, 2026, VBNK trades above its calculated fair value: price $22.95, fair value $8.30, a gap of about −64% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of VBNK?
No. The price is what the market pays today ($22.95); the fair value is what the company's own numbers justify ($8.30). For VersaBank the two are $14.65 per share apart. That gap is exactly why we show both numbers side by side.
How much is VersaBank worth?
The market values VersaBank at about $774M (market capitalisation, as of Nov 5, 2026). Per share that is $22.95; our models calculate a fair value of $8.30 per share.
What do the bullish and bearish scenarios say about VBNK?
Our models span a range for VersaBank: cautious scenario $6.33, base $8.30, optimistic $10.55 per share (as of Nov 5, 2026, price $22.95). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of VBNK?
VersaBank trades at a price-to-earnings ratio of 30.2 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $8.30 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings: 9.9. Other multiples: P/B 2.1, P/S 7.5, EV/EBITDA 13.8.
How solid is the balance sheet of VersaBank (VBNK)?
Balance-sheet figures for VersaBank (as of Nov 5, 2026): return on equity 6.2%, debt of 0.19 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is VBNK from its 52-week high?
VersaBank trades at $22.95, about 3% below its 52-week high of $23.72 and 104% above the low of $11.23 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $8.30 is for.
Which stocks are comparable to VersaBank?
From the same area (Financial Services) we also value China Merchants Bank Co, DBS Group, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is VersaBank stock attractive at the current price?
The data as of Nov 5, 2026: price $22.95, calculated fair value $8.30 (−64%), Quality Score 53/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of VBNK calculated?
We run VersaBank through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of $8.30 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. VersaBank itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of VersaBank (VBNK)?
The closing price on Nov 6, 2026 was $22.95. Our model-based fair value is $8.30, about 64% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with VersaBank right now?
The price sits above even our optimistic bull case ($10.55). The favourable scenario is already priced in. Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of VersaBank (VBNK) come from?
Earnings per share at VersaBank grew +14.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.8 %, EBIT margin +10.2 %, tax rate −1.6 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of VersaBank

How large is the market capitalisation of VersaBank (VBNK)?
The market capitalisation of VersaBank is $774M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of VersaBank (VBNK)?
The price-to-sales ratio of VersaBank is 7.15 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of VersaBank (VBNK)?
Earnings per share at VersaBank are $0.7600 (price ÷ EPS = P/E 30.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of VersaBank (VBNK)?
The dividend yield of VersaBank is 0.1% (payout 3.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of VersaBank (VBNK)?
The net margin of VersaBank is 23.7% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of VersaBank (VBNK)?
The return on equity (ROE) of VersaBank is 6.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of VersaBank (VBNK)?
On an EBIT basis the return on assets of VersaBank is 1.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of VersaBank (VBNK)?
The operating margin of VersaBank is 35.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at VersaBank (VBNK)?
Revenue at VersaBank is growing +28.4% versus a year earlier (3y avg −3.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at VersaBank (VBNK)?
Earnings per share at VersaBank are growing +55.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does VersaBank (VBNK) generate?
The free cash flow of VersaBank is −C$680M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does VersaBank (VBNK) hold?
VersaBank holds more cash than debt, C$473M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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