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

As of Sep 23, 2026: fair value of VersaBank $7.82, price $23.06, upside -66.1%, quality 37 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Financial Services · US · Home Canada · ISIN CA92512J1066

V VersaBank logo Some data Sep 23, 2026

VersaBank

VBNK · US

Weakest SetupStrongly overvalued and low quality.

!Fair value $7.82 · Strongly overvalued (−66%)
!Quality 37/100
!Expensive Growth (revenue YoY +7.7 %/yr)
✓Highly profitable · 22.0% net margin (TTM)
!Low debt · negative free cash flow
·0.43% dividend yield
!Trails peers (3/13)
!Moderate moat 52/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 22 out of 100
!Weak on dividend: 9 out of 100
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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 $4.85 Fair Value $7.82 Jul 2020 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.

How to read this chart

60‑month range $4.85 – $23.72 · fair‑value band $5.87 – $9.78 · the $23.06 price screens above the $7.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 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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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. 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 $23.06, while our model-based Fair Value estimate is $7.82, implying the stock looks roughly 194.9% overvalued today.

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Valuation

Bull case: the Economic Profit group reads highest at a median of $11.96 per share, and 0 of the 4 models we run sit above the $23.06 price.

Bear case: the Asset-Based group reads lowest at $11.09, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.

Scenario range: $5.87 (bear) to $9.78 (bull), the price of $23.06 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 37/100 (below-average 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 $727M · P/E ratio 34.9 · P/S ratio 8.27 · EPS (TTM) $0.6600 · Dividend yield 0.4% · Net margin 23.7% · Return on equity 5.6% · Return on assets (EBIT) 1.1%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (low confidence).

What moves the price

The share trades about 3% below its 52-week high and 105% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −38% fair-value upside, at −66%, VBNK screens richer than that median.

Fair Value models

Bear $5.87 Fair Value $7.82 Bull $9.78
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then ($0.5032 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. Evidence ⓘEvidence = 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.
Highest evidence
Residual Income $12.03 $11.96 $10.81 74
P/E Multiple $8.62 $11.49 $14.36 63
P/B Multiple $11.27 $15.03 $18.78 55
All 4 models by family
Multiples
P/E Multiple $8.62 $11.49 $14.36 63
P/B Multiple $11.27 $15.03 $18.78 55
Asset-Based
NCAV (Graham) $8.27 $11.09 $16.54 54
Economic Profit
Residual Income $12.03 $11.96 $10.81 74

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Quality Score breakdown

Overall quality 37/100

Of which business quality 39 · Market factors (momentum, volatility) 80

Profitability 31
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 49
Calm price path (market factor)
Momentum 92
Price trend over the last 3–12 months (market factor)
52W Momentum 97
Distance to the 52-week high (market factor)
Net Issuance 17
Share count: buybacks or dilution?

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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.
−0.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−1.1%
Dividend (yield on the price)0.4%
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% vs 8%, 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%
Start year 2020 (pandemic)

VBNK screens 195% overvalued. Compare with DBS Group →

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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 · 1074 stocks

Beats the industry median on 3/13 measures
Overall it trails its industry peers.
Valuation
Quality Score 38 · Bottom 25%
Fair Value upside −66% · Bottom 25%
Profitability
Return on equity (TTM) 6% · Bottom 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 22% · Below median
Operating margin (TTM) 27% · Below median
Growth and dividend
Revenue growth 30% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Balance sheet
Debt / equity 0.19× · Below median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (TTM) 34.9× · Priciest 25%
P/B 1.36× · Pricier than median
P/S (TTM) 5.27× · Priciest 25%
EV/EBITDA 5.6× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 12
FUTURE (revenue growth)100 · sector 45
PAST (return on equity)22 · sector 41
HEALTH (low debt)90 · sector 85
DIVIDEND (yield)9 · sector 53

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

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
DBS Group D05 77.80 SGD 40.48 SGD −48%
China Merchants Bank Co 3968 HK$51.65 HK$64.29 +24%
Intesa Sanpaolo S.p.A ISP €6.73 €4.04 −40%
HDFC Bank Limited HDFCBANK ₹738.60 ₹418.52 −43%
BNP Paribas SA BNP €101.30 €105.99 +5%
UniCredit S.p.A UCG €83.28 €77.62 −7%
Mizuho Financial Group MFG $10.87 $6.75 −38%
ICICI Bank Limited ICICIBANK ₹1,340 ₹636.31 −53%
The PNC Financial Services Group PNC $227.96 $159.52 −30%
Oversea-Chinese Banking Corporation O39 32.14 SGD 19.80 SGD −38%

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VersaBank · Fair Value
$7.82 −195%Fair Value
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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 Sep 23, 2026, our model estimates a fair value of $7.82 versus a price of $23.06, about −66% upside (overvalued).
What is the fair value of VBNK?
Our model-based fair value for VersaBank is $7.82 (as of Sep 23, 2026), built from audited fundamentals. The current price: $23.06.
What is the quality score of VBNK?
VersaBank has a Quality Score of 37/100. 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 $7.82 (as of Sep 23, 2026) from 4 valuation models. Cautious scenario $5.87, optimistic scenario $9.78. 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 $7.82, about −66% upside versus a price of $23.06 (overvalued). Cautious scenario $5.87, optimistic scenario $9.78. The calculation is refreshed regularly with new filings.
What is the revenue of VersaBank (VBNK)?
VersaBank reported trailing-twelve-month revenue of about C$138M (latest available figure, as of Sep 23, 2026).
Does VersaBank pay a dividend?
VersaBank currently shows a dividend yield of about 0.43% relative to its recent price (as of Sep 23, 2026).
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 $7.82 per share (as of Sep 23, 2026), against a price of $23.06. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is VersaBank stock overvalued or undervalued in 2026?
As of Sep 23, 2026, VBNK trades above its calculated fair value: price $23.06, fair value $7.82, a gap of about −66% (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 ($23.06); the fair value is what the company's own numbers justify ($7.82). For VersaBank the two are $15.24 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 $727M (market capitalisation, as of Sep 23, 2026). Per share that is $23.06; our models calculate a fair value of $7.82 per share.
What do the bullish and bearish scenarios say about VBNK?
Our models span a range for VersaBank: cautious scenario $5.87, base $7.82, optimistic $9.78 per share (as of Sep 23, 2026, price $23.06). 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 34.9 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $7.82 is built from several models across several years. Other multiples: P/B 1.4, P/S 5.3, EV/EBITDA 5.6.
How solid is the balance sheet of VersaBank (VBNK)?
Balance-sheet figures for VersaBank (as of Sep 23, 2026): return on equity 5.6%, debt of 0.19 per unit of equity. They feed the Quality Score of 37/100, which measures business quality independently of the share price.
How far is VBNK from its 52-week high?
VersaBank trades at $23.06, about 3% below its 52-week high of $23.72 and 105% above the low of $11.23 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $7.82 is for.
Which stocks are comparable to VersaBank?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, Intesa Sanpaolo S.p.A, HDFC Bank Limited, 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 Sep 23, 2026: price $23.06, calculated fair value $7.82 (−66%), Quality Score 37/100, from 4 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 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $7.82, 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 14.1 % 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 Sep 23, 2026 was $23.06. Our model-based fair value is $7.82, about −66% upside (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 ($9.78). The favourable scenario is already priced in. Weak quality (37/100) and above fair value at the same time, the margin of safety is missing on both counts. 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 $727M. 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 8.27 (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 $0.6600 (price ÷ EPS = P/E 34.9). 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 0.4% (payout 15.2%). 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 5.6% (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 27.4% (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 +29.5% 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 −11.5% 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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