Is Lake Shore Bancorp, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Lake Shore Bancorp, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 22, a Price to Book Value of 1.20, and an EV to EBITDA of 13.74. In comparison to its peers, Lake Shore Bancorp's P/E ratio is notably higher than First Capital, Inc. at 13.48 and BV Financial, Inc. at 13.21, both of which are rated as fair.
The company's strong dividend yield of 339.50% and a PEG ratio of 1.17 further reinforce the attractiveness of its valuation. Despite recent underperformance compared to the S&P 500 over the past week and month, Lake Shore Bancorp has outperformed the index significantly on a year-to-date basis with a return of 13.88% compared to the S&P 500's 2.44%. Overall, the analysis suggests that Lake Shore Bancorp, Inc. is positioned as an attractive investment opportunity.