2 models fit VersaBank Common Shares and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze45
Valued as a bank: Residual income, P/E comparison, and Graham number.
ACCE opinionVersaBank Common Shares (VBNK)
Fair value (2 models)
$10.77
ACCE price target
$24.00
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 12:04 CEST; previously $11.02 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 14 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 12:04 CEST.
Price used: $23.25 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
115.8% above
-53.7% to fair value
ACCE score
80
out of 100
Analysts
100% buy
3 covering
P/E
30.1x
forward 11.6x
1-year return
+96.7%
Dividend yield
0.11%
VersaBank Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
VersaBank is a small Canadian bank whose core business is digital banking through its VersaBank and Peoples Trust brands, with a substantial part of its book in US commercial and residential lending and a deposit franchise built on online and third-party channels. Its edge is an unusually lean cost base: a 35.5% operating margin is far above what most regional banks earn, and it funds itself with a mix of deposits that lets it grow loans without the branch overhead of its peers. Revenue grew 28.4% over the last year, and with a 6.2% ROE and a forward P/E of 11.6 against a trailing 29.5, the market is pricing in a sharp earnings step-up that the trailing numbers do not yet show. The question for a deeper look is whether that earnings rebound and the lower-return-on-equity drag from its capital position are real, since the gap between trailing and forward multiples is the entire thesis. At roughly $726M of market cap with no index membership, the name is small enough that its valuation can move on thin volume, which cuts both ways.
⚠ Investor warnings · 1 flagAI-assisted·How I use AI
moderate
Earnings miss last quarter
Q3 2026 EPS came in 20.6% below estimates, even though year-over-year earnings grew 55.0%. One quarter does not make a trend, but it is worth checking whether the miss repeats.
AI research notes
AI-assisted·How I use AIWritten Oct 16, 2026 · figures from 2026-10-15 · prices to Oct 23, 2026
Why it could do well
Revenue grew 28.4% year over year, well above its 6.9% average annual pace over five years.
The stock trades at 12.9 times forward earnings, slightly above the sector median of 11.8 times.
All three analysts covering the stock rate it Buy or Strong Buy, with a mean price target of $25.50.
Why it could disappoint
The consensus fair value of $11.02 sits 50.8% below the $22.39 share price, with only two of three valuation models contributing.
The latest quarter's earnings per share missed expectations by 20.6%, coming in at 0.27 against 0.34 expected.
Return on equity of 6.2% is thin, and the diluted share count rose 21.3% last fiscal year, diluting shareholders.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Dec 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where VBNK's valuation models land
Price
$23.25
Model fair value
$10.77
Model range
$8.86 to $13.07
Fair value $10.77
Price $23.25
The price is above the whole model range.
Model
Fair value
Upside
Graham number
P/E comparison
Residual income
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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