Is Lake Shore Bancorp, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Lake Shore Bancorp, Inc. moved from fair to attractive, indicating a more favorable assessment. 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 ratio of 13.74. In comparison to peers, Lake Shore Bancorp's P/E ratio is higher than BV Financial, Inc. at 15.53 and lower than Finward Bancorp at 26.38, suggesting it is competitively positioned within its industry.
Additionally, Lake Shore Bancorp has demonstrated strong recent performance, with a year-to-date return of 29.25%, significantly outperforming the S&P 500's 12.22% during the same period. This performance, combined with its attractive valuation metrics, reinforces the view that the company is undervalued relative to its peers and the broader market.