Monday, August 6, 2007

Evans Bancorp Inc.

Evans Bancorp Inc. is a NASDAQ listed security that has been trading in a range between $19.00 and $22.81 over the past year. With 2,748,010 shares outstanding, a recent price of $19.25 gives a total market capitalization of $53,036,591. While there are certainly larger companies, Evans Bancorp Inc. has definitely earned its place in the pack. Last year, Evans Bancorp Inc. created $1.76 in earnings for every share outstanding.

Evans Bancorp Inc. is currently priced by the market at 10.90 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share in excess of $1 a share, Evans Bancorp Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.