VersaBank (VBNK) Fair Value & Analysis

Financial Services · US · Market cap $619M

Below-average quality, and screening another 64% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($8.68). 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.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $3.75 – $23.72 · fair‑value band $5.20 – $8.68 · the $19.09 price screens above the $6.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

Full chart & analysis →

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Analysis

VersaBank (VBNK) currently trades at $19.09, while our model-based Fair Value estimate is $6.94, implying the stock looks roughly 63.7% overvalued today. The Quality Score stands at 37/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, VersaBank generated revenue of $138M at a net margin of 22.0%. Revenue grew 29.5% year over year. It earns a return on equity of 5.6%. The balance sheet holds a net cash position of $473M. Fundamentals as of Jul 27, 2026

Our scenario range runs from $5.20 (bear case) to $8.68 (bull case); at $19.09, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 90% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -64%, VBNK screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Economic Profit ($11.96) versus Asset-Based ($11.09). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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

VBNK screens 64% overvalued. Compare with PT Bank Central Asia Tbk →

Peer Group

Banks - Regional · 1083 stocks

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.

Valuation Multiples vs Banks - Regional median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

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

Values & ESG

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.