Is Lake Shore Bancorp, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lake Shore Bancorp, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. 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's P/E ratio is higher than BV Financial, Inc. at 15.53 and CF Bankshares, Inc. at 10.00, suggesting that while it is priced higher than some competitors, its valuation may still be justified given its attractive grade change.
Despite the lack of return data for a direct comparison with the S&P 500, the recent grade improvement and the strong dividend yield of 339.50% reinforce the notion that Lake Shore Bancorp, Inc. is positioned favorably within its industry. Overall, the combination of these metrics supports the conclusion that the stock is undervalued relative to its peers and recent performance indicators.