| VBNK Stock | | | 23.86 0.04 0.17% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
World Market Map to better understand how to build diversified portfolios, which includes a position in VersaBank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
To learn how to invest in VersaBank Stock, please use our
How to Invest in VersaBank guide.
At this time, VersaBank's
Return On Capital Employed is very stable compared to the past year. As of the 22nd of November 2024,
Capital Expenditure Coverage Ratio is likely to grow to 315.94, while
Net Invested Capital is likely to drop about 401.9
M. At this time, VersaBank's
Net Income is very stable compared to the past year. As of the 22nd of November 2024,
Income Tax Expense is likely to grow to about 18.7
M, while
Selling General Administrative is likely to drop about 29.4
M.
VersaBank Company Z Score Analysis
VersaBank's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
|
| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
|
| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
|
| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
|
| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
|
VersaBank Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for VersaBank is extremely important. It helps to project a fair market value of VersaBank Stock properly, considering its historical
fundamentals such as Z Score. Since VersaBank's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of VersaBank's historical
financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of VersaBank's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
As per the company's disclosures, VersaBank has a Z Score of 0.0. This is 100.0% lower than that of the Banks sector and about the same as
Financials (which currently averages 0.0) industry. The z score for all Canada stocks is 100.0% higher than that of the company.
VersaBank Current Valuation Drivers
We derive many important indicators used in calculating different scores of VersaBank from analyzing VersaBank's financial statements. These drivers represent accounts that assess VersaBank's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of VersaBank's important valuation drivers and their relationship over time.
| | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) |
| Market Cap | | 139.2M | 322.8M | 254.8M | 272.2M | 245.0M | 158.5M |
| Enterprise Value | | (101.7M) | 151.7M | 271.2M | 250.6M | 225.5M | 236.8M |
VersaBank Fundamentals
About VersaBank Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze VersaBank's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of VersaBank using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of VersaBank based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Pair Trading with VersaBank
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if VersaBank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VersaBank will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to VersaBank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VersaBank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back VersaBank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling VersaBank to buy it.
The correlation of VersaBank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as VersaBank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VersaBank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for VersaBank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
When determining whether VersaBank is a good investment, qualitative aspects like company
management, corporate governance, and ethical practices play a significant role. A
comparison with peer companies also provides context and helps to understand if VersaBank Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Versabank Stock.
Highlighted below are key reports to facilitate an investment decision about Versabank Stock: Check out
World Market Map to better understand how to build diversified portfolios, which includes a position in VersaBank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
To learn how to invest in VersaBank Stock, please use our
How to Invest in VersaBank guide.
You can also try the
Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Please note, there is a significant difference between VersaBank's value and its price as these two are different measures arrived at by different means. Investors typically determine if VersaBank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VersaBank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.