Is Lake Shore Bancorp, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lake Shore Bancorp, Inc. moved from fair to attractive, indicating a more favorable assessment of its 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, peers such as BV Financial, Inc. have a P/E of 15.53, while First Capital, Inc. boasts a more attractive P/E of 12.46, suggesting that Lake Shore Bancorp is priced higher relative to some of its competitors.
Despite recent underperformance against the S&P 500 over shorter time frames, with a 1-week return of -2.80% compared to the index's 1.70%, the company's year-to-date return of 23.43% outpaces the S&P 500's 13.30%. This performance, combined with its attractive valuation ratios, reinforces the notion that Lake Shore Bancorp is currently undervalued in the market.