VersaBank (VBNK.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+61.2%

CA$48.82

vs CA$30.29 price

Levered DCF

CA$32.14

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.73

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.6×	14.05×	6.6×	11.76×	15.46×	8.04×	7.73×	9.4×
P/B	0.99×	1.36×	0.72×	0.73×	0.97×	0.55×	0.58×	0.67×
P/S	1.73×	1.85×	1.14×	1.92×	3.41×	1.62×	1.57×	1.84×
EV / EBITDA	1.22×	7.43×	4.22×	7.99×	4.66×	-3.65×	1.33×	2.43×
Gross margin	39.5%	37.9%	45.4%	61.8%	69.5%	63.3%	61.4%	63.3%
Operating margin	13.6%	18.6%	24.2%	24.6%	32.5%	31.1%	31.5%	30.8%
Net margin	9.4%	13.5%	17.7%	17.1%	23.6%	22.5%	22.9%	22.3%
Current ratio	0.13×	0.06×	0.04×	0.04×	2.48×	0.16×	0.1×	0.09×
Debt / equity	0.2×	0.27×	0.29×	0.31×	0.3×	0.07×	0.16×	0.19×
Interest coverage	0.23×	0.3×	0.45×	0.65×	1.05×	0.84×	0.81×	0.85×
Dividend yield	0.6%	0.7%	1.3%	1.5%	1.2%	3.1%	2.7%	2.0%
Payout ratio	11.4%	9.0%	8.5%	16.5%	17.2%	22.1%	18.2%	16.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.3%	10.0%	11.2%	6.5%	6.7%	7.6%	8.4%	8.1%
Return on invested capital	3.0%	5.7%	6.4%	3.8%	1.0%	6.9%	7.0%	6.6%
Return on assets	0.5%	0.8%	1.0%	0.7%	0.9%	1.0%	1.1%	1.0%
Free cash flow yield	28.3%	46.8%	34.7%	-13.0%	-33.6%	100.1%	14.1%	-10.7%
Earnings yield	5.4%	7.3%	15.5%	8.9%	6.9%	13.9%	14.6%	12.1%
Enterprise value	CA$54.2M	CA$426.8M	CA$250.6M	CA$275.6M	CA$151.7M	-CA$101.7M	CA$37.9M	CA$62.3M
Net debt / EBITDA	-10.61×	-2.03×	-0.36×	0.6×	-5.26×	-8.64×	-3.54×	-3.38×
Cash conversion cycle (days)	37	40	10	-4	-1,357	-1,080	-1,008	-1,147