Stock fact sheet · data as of
VersaBank (VBNK): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · Canada · Blend
Is VBNK undervalued?
VBNK has a margin of safety of 33%: the stock closed at 21.88 on 16 Oct 2026 against a GLS average fair value of 32.84. 4 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (1.47) and Payback Time (72.25). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files VBNK under Blend.
Nine valuation models for VBNK
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 17.06 | -22% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 20.34 | -7% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 42.05 | +92% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 18.38 | -16% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 44.05 | +101% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 71.77 | +228% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 72.25 | +230% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 1.47 | -93% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 8.17 | -63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -143.82 | -757% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 24.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
VersaBank scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.0/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 4.4%, ROE 5.3%, ROA 0.5% - with debt at 0.20 times equity and a free-cash-flow yield of 10.2%.
The dividend yield is 0.32% with a payout ratio of 9% - a small yield that leaves most of the earnings in the business.
Institutional ownership scores 6/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 4.4% |
|---|---|---|---|
| GLS Moat | 4.0 / 10 | ROE | 5.3% |
| Debt / equity | 0.20 | ROA | 0.5% |
| Free-cash-flow yield | 10.2% | Payout ratio | 9% |
| Institutions | 6 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - VersaBank clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 13/20, Moat 6/15, Premium 18/20, Stability 9/20; Moat (6/15) scores lowest.
Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (18 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 574 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 154k shares a day on a market cap of $709M, with a beta of 1.04; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 33% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 4.0/10 | |
| Premium | 18 / 20 | implied volatility 70% | |
| Stability | 9 / 20 | 154k shares/day, $709M cap, beta 1.04 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Dec 2026, 54 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to VersaBank by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CUBB Customers Bancorp, Inc 5.375% S | 20.91 | 246.77 | +92% | 39No options | $714M |
| WASH Washington Trust Bancorp, Inc. | 36.74 | 44.17 | +17% | 67Good | $701M |
| BCAL California BanCorp | 21.71 | 39.91 | +46% | 39No options | $698M |
| IBCP Independent Bank Corporation | 35.29 | 35.60 | +1% | 69Good | $727M |
| TCBX Third Coast Bancshares, Inc. | 41.20 | 103.49 | +60% | 73Good | $686M |
| AROW Arrow Financial Corporation | 36.80 | 45.19 | +19% | 70Good | $682M |
| PFIS Peoples Financial Services Corp. | 67.58 | 93.27 | +28% | 39No options | $677M |
| SHBI Shore Bancshares, Inc. | 22.32 | 27.93 | +20% | 75Good | $745M |
| CARE Carter Bankshares, Inc. | 30.31 | 45.65 | +34% | 74Good | $672M |
| MSBI Midland States Bancorp, Inc. | 32.30 | 42.70 | +24% | 73Good | $670M |
| MSBIP Midland States Bancorp, Inc. | 25.19 | 37.86 | +33% | 39No options | $669M |
| SMBC Southern Missouri Bancorp, Inc. | 68.87 | 95.22 | +28% | 79Good | $758M |
⚖ Compare VBNK with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about VBNK
Is VBNK undervalued right now?
By the GLS models, yes: at 21.88 the stock is 33% below the average fair value of 32.84 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of VBNK and what does it mean?
VBNK scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for VBNK?
32.84 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does VersaBank report earnings next?
The next earnings report is due on 9 Dec 2026 (before the open), 54 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does VBNK have listed options, and how liquid are they?
Yes. The nightly snapshot found 84 listed contracts with 574 open interest across all expiries and implied volatility of 70% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.