VersaBank (VBNK) 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

-19.8%

$17.41

vs $21.71 price

Levered DCF

$12.58

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.74

Distress zone

Rating

B-

Overall 3 / 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	18.47×	14.03×	6.76×	11.97×	15.47×	8.66×	7.96×	8.74×
P/B	0.98×	1.36×	0.74×	0.74×	0.97×	0.59×	0.6×	0.71×
P/S	4.36×	4.86×	1.17×	1.96×	3.41×	1.74×	1.62×	1.96×
EV / EBITDA	1.13×	7.42×	4.33×	8.12×	4.67×	-3.26×	1.47×	2.81×
Gross margin	100.0%	100.0%	45.4%	61.8%	69.5%	63.3%	61.4%	63.3%
Operating margin	34.5%	49.1%	24.2%	24.6%	32.5%	31.1%	31.5%	30.8%
Net margin	23.7%	35.6%	17.7%	17.1%	23.6%	22.5%	22.9%	22.3%
Current ratio	0.13×	0.06×	0.04×	0.04×	0.15×	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%	1.4%	1.2%	2.9%	2.6%	1.9%
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%	5.0%	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	8.3%	46.8%	33.8%	-12.8%	-33.5%	93.0%	13.7%	-10.0%
Earnings yield	5.4%	7.3%	15.1%	8.7%	6.9%	12.9%	14.1%	11.4%
Enterprise value	$50.4M	$426M	$257.2M	$280.2M	$152M	-$91M	$42M	$72.1M
Net debt / EBITDA	-10.61×	-2.03×	-0.36×	0.6×	-5.26×	-8.64×	-3.54×	-3.38×
Cash conversion cycle (days)	93	106	10	-4	-1,357	-1,080	-1,008	-1,147