Latest Ratios: P/E Ratio 30.4x · EV/EBITDA 9.1x · ROE 6.1%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $621M | $374M | $389M | $201M | $190M | $262M | — | — | — | $92M | — |
| Enterprise Value | $287M | $-99213459 | $273M | $179M | $211M | $91M | — | — | — | $-24438054 | — |
| P/E Ratio → | 30.41 | 13.19 | 10.07 | 4.87 | 8.78 | 12.53 | — | — | — | 5.34 | — |
| P/S Ratio | 7.33 | 3.11 | 3.49 | 0.84 | 1.44 | 2.76 | — | — | — | 1.29 | — |
| P/B Ratio | 1.62 | 0.70 | 0.98 | 0.53 | 0.54 | 0.79 | — | — | — | 0.44 | — |
| P/FCF | — | — | 1.53 | 2.13 | — | — | — | — | — | 1.22 | — |
| P/OCF | — | — | 1.43 | 2.12 | — | — | — | — | — | 1.19 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.83 | 2.44 | 0.75 | 1.59 | 0.96 | — | — | — | -0.34 | — |
| EV / EBITDA | 9.15 | -2.22 | 4.75 | 3.02 | 6.12 | 2.78 | — | — | — | -1.60 | — |
| EV / EBIT | 9.83 | -2.39 | 4.98 | 3.11 | 6.49 | 2.94 | — | — | — | -1.66 | — |
| EV / FCF | — | — | 1.07 | 1.90 | — | — | — | — | — | -0.32 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 100.0% | 100.0% | 100.0% | 45.4% | 61.8% | 69.5% | 63.3% | 61.4% | 63.3% | 61.4% | 54.7% |
| Operating Margin | 34.5% | 34.5% | 49.1% | 24.2% | 24.6% | 32.5% | 31.1% | 31.5% | 30.8% | 20.6% | 16.6% |
| Net Profit Margin | 23.7% | 23.7% | 35.6% | 17.7% | 17.1% | 23.6% | 22.5% | 22.9% | 22.3% | 27.2% | 11.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.1% | 6.1% | 10.2% | 11.6% | 6.6% | 7.6% | 7.8% | 8.7% | 8.4% | 9.9% | 4.7% |
| ROA | 0.5% | 0.5% | 0.9% | 1.1% | 0.8% | 1.0% | 1.0% | 1.1% | 1.0% | 1.1% | 0.5% |
| ROIC | 5.4% | 5.4% | 8.3% | 9.1% | 5.5% | 6.6% | 7.3% | 7.7% | 7.2% | 4.5% | 3.7% |
| ROCE | 5.1% | 5.1% | 8.1% | 9.2% | 6.2% | 8.4% | 9.4% | 9.9% | 2.6% | 1.6% | 1.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.27 | 0.29 | 0.31 | 0.30 | 0.07 | 0.16 | 0.19 | 0.21 | 0.31 |
| Debt / EBITDA | 2.43 | 2.43 | 1.89 | 1.86 | 3.17 | 3.09 | 0.60 | 1.34 | 1.68 | 2.82 | 4.60 |
| Net Debt / Equity | — | -0.89 | -0.29 | -0.06 | 0.06 | -0.52 | -0.94 | -0.42 | -0.39 | -0.56 | -0.20 |
| Net Debt / EBITDA | -10.61 | -10.61 | -2.03 | -0.36 | 0.60 | -5.26 | -8.64 | -3.54 | -3.38 | -7.65 | -2.90 |
| Debt / FCF | — | — | -0.46 | -0.23 | — | — | -1.73 | -5.16 | — | -1.55 | — |
| Interest Coverage | 0.23 | 0.23 | 0.30 | 0.45 | 0.65 | 1.05 | 0.84 | 0.81 | 0.85 | 0.53 | 0.38 |
Net cash position: cash ($582M) exceeds total debt ($109M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.13 | 0.13 | 0.06 | 0.04 | 0.04 | 0.15 | 0.16 | 0.10 | 0.09 | 1.80 | 0.08 |
| Quick Ratio | 0.13 | 0.13 | 0.06 | 0.04 | 0.04 | 0.15 | 0.16 | 0.10 | 0.09 | 1.80 | 0.08 |
| Cash Ratio | 0.12 | 0.12 | 0.05 | 0.04 | 0.03 | 0.14 | 0.15 | 0.09 | 0.08 | 1.73 | 0.06 |
| Asset Turnover | — | 0.02 | 0.02 | 0.06 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.9% | 0.9% | 1.8% | 2.0% | 1.5% | — | — | — | 2.4% | — |
| Payout Ratio | 11.4% | 11.4% | 9.0% | 8.5% | 16.5% | 17.2% | 22.1% | 18.2% | 16.8% | 11.3% | 26.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 7.6% | 9.9% | 20.5% | 11.4% | 8.0% | — | — | — | 18.7% | — |
| FCF Yield | — | — | 65.3% | 46.9% | — | — | — | — | — | 81.8% | — |
| Buyback Yield | 1.0% | 2.4% | 0.0% | 6.6% | 1.0% | 0.0% | — | — | — | 0.0% | — |
| Total Shareholder Yield | 1.4% | 3.3% | 0.9% | 8.4% | 3.0% | 1.5% | — | — | — | 2.4% | — |
| Shares Outstanding | — | $32M | $26M | $26M | $27M | $22M | $21M | $21M | $21M | $21M | $20M |
Broker deposit rate sensitivity
According to recent market data, VersaBank trades at a P/B of 1.62, which appears to discount the bank relative to high-growth peers while simultaneously pricing in the inherent complexity of its non-banking cybersecurity subsidiary and the execution risks associated with its ongoing US market expansion.
The current valuation suggests that investors are struggling to reconcile the bank's digital-first efficiency with the lumpy earnings profile of its hybrid business model. The discrepancy between the TTM P/E of 30.39 and the forward P/E of 11.40 indicates that the market expects a significant earnings inflection, likely driven by the successful scaling of the US POS financing operations.
As reported in financial statements, VersaBank's ROE has remained constrained between 1.0% and 3.3% over the last ten quarters, suggesting that the bank's profitability is currently limited by a stagnant NIM and the high capital requirements necessary to support its specialized digital lending infrastructure.
The DuPont decomposition indicates that while the bank benefits from a lean operating structure, the lack of significant NIM expansion prevents a meaningful uplift in ROE. Investors should monitor whether the bank can improve its asset utilization as the US loan book matures, which may provide the necessary leverage to drive higher returns on equity.
Based on quarterly filings, VersaBank has successfully maintained an efficiency ratio as low as 16.6% in 2024Q2, demonstrating that its branchless model provides significant operating leverage even as the NIM remains compressed at approximately 0.6% due to rising broker-sourced deposit costs in the Canadian market.
The bank's ability to keep non-interest expenses low is a critical defense against the volatility of its funding costs. However, the persistent 0.6% NIM suggests that the bank lacks significant pricing power in its POS financing segment, making it highly sensitive to shifts in the interest rate environment.
According to recent regulatory disclosures, VersaBank has maintained an equity-to-assets ratio consistently between 0.08 and 0.10, which indicates a disciplined approach to capital management that supports organic asset growth while avoiding the need for dilutive equity raises in the current competitive environment.
This capital stability appears to provide a sufficient buffer for the bank to pursue its US expansion strategy without compromising its regulatory standing. Analysts should continue to monitor whether the integration of the US charter necessitates a higher capital cushion, which could potentially dampen future ROE expansion.
Financial analysis suggests that the P/E ratio is the most commonly misapplied metric for VersaBank, as it fails to account for the significant volatility in provision for credit losses and the non-recurring nature of gains from the cybersecurity segment, which distort headline earnings.
Investors should instead focus on P/TBV and NIM-adjusted earnings, as these metrics better capture the underlying value of the bank's digital deposit-gathering engine. Relying on P/E risks misinterpreting the bank's true profitability, as it obscures the structural protection provided by the POS holdback mechanism.
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying VBNK stock.
VersaBank's current P/E ratio is 30.4x. The historical average is 9.1x. This places it at the 100th percentile of its historical range.
VersaBank's current EV/EBITDA is 9.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.2x.
VersaBank's return on equity (ROE) is 6.1%. The historical average is 6.9%.
Based on historical data, VersaBank is trading at a P/E of 30.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
VersaBank's current dividend yield is 0.38% with a payout ratio of 11.4%.
VersaBank has 100.0% gross margin and 34.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
VersaBank's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.