Risk factor
Significant default risk
Profitability factor
Overvalued vs peers
About
VersaBank operates as a Schedule I chartered bank in Canada, offering a comprehensive suite of financial products and services. Its diverse deposit solutions include guaranteed investment certificates (GICs), registered retirement savings plans (RRSPs), daily interest savings accounts, and tax-free savings accounts (TFSAs), along with deposit insurance. The bank also provides extensive lending services, notably specializing in point-of-sale financing through the acquisition of loan and lease receivables from various finance companies. Furthermore, its commercial banking division finances projects such as commercial real estate, public sector infrastructure, condominium developments, and residential mortgages. Founded in 1979 and based in London, Canada, the institution previously operated under the name Pacific & Western Bank of Canada, rebranding to VersaBank in May 2016.
Company Valuation
From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, 'expensive' on P/IBP.
Target Price
The average target price of VBNK.TO is 31.0 and suggests 0.584% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommend