MELI Relative Valuation
MELI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MELI is overvalued; if below, it's undervalued.
Historical Valuation
MercadoLibre Inc (MELI) is now in the Fair zone, suggesting that its current forward PS ratio of 3.07 is considered Fairly compared with the five-year average of 146.43. The fair price of MercadoLibre Inc (MELI) is between 1702.97 to 4902.51 according to relative valuation methord.
Relative Value
Fair Zone
1702.97-4902.51
Current Price：2066.42
Fair
40.45
PE
1Y
3Y
5Y
Trailing
Forward
22.44
EV/EBITDA
MercadoLibre Inc. (MELI) has a current EV/EBITDA of 22.44. The 5-year average EV/EBITDA is 53.25. The thresholds are as follows: Strongly Undervalued below -55.67, Undervalued between -55.67 and -1.21, Fairly Valued between 107.71 and -1.21, Overvalued between 107.71 and 162.18, and Strongly Overvalued above 162.18. The current Forward EV/EBITDA of 22.44 falls within the Historic Trend Line -Fairly Valued range.
28.17
EV/EBIT
MercadoLibre Inc. (MELI) has a current EV/EBIT of 28.17. The 5-year average EV/EBIT is 81.47. The thresholds are as follows: Strongly Undervalued below -130.54, Undervalued between -130.54 and -24.53, Fairly Valued between 187.48 and -24.53, Overvalued between 187.48 and 293.48, and Strongly Overvalued above 293.48. The current Forward EV/EBIT of 28.17 falls within the Historic Trend Line -Fairly Valued range.
3.07
PS
MercadoLibre Inc. (MELI) has a current PS of 3.07. The 5-year average PS is 5.53. The thresholds are as follows: Strongly Undervalued below -0.38, Undervalued between -0.38 and 2.57, Fairly Valued between 8.48 and 2.57, Overvalued between 8.48 and 11.43, and Strongly Overvalued above 11.43. The current Forward PS of 3.07 falls within the Historic Trend Line -Fairly Valued range.
13.06
P/OCF
MercadoLibre Inc. (MELI) has a current P/OCF of 13.06. The 5-year average P/OCF is 39.78. The thresholds are as follows: Strongly Undervalued below -139.24, Undervalued between -139.24 and -49.73, Fairly Valued between 129.29 and -49.73, Overvalued between 129.29 and 218.81, and Strongly Overvalued above 218.81. The current Forward P/OCF of 13.06 falls within the Historic Trend Line -Fairly Valued range.
12.13
P/FCF
MercadoLibre Inc. (MELI) has a current P/FCF of 12.13. The 5-year average P/FCF is 109.73. The thresholds are as follows: Strongly Undervalued below -302.43, Undervalued between -302.43 and -96.35, Fairly Valued between 315.81 and -96.35, Overvalued between 315.81 and 521.89, and Strongly Overvalued above 521.89. The current Forward P/FCF of 12.13 falls within the Historic Trend Line -Fairly Valued range.
MercadoLibre Inc (MELI) has a current Price-to-Book (P/B) ratio of 16.77. Compared to its 3-year average P/B ratio of 25.72 , the current P/B ratio is approximately -34.77% higher. Relative to its 5-year average P/B ratio of -13.81, the current P/B ratio is about -221.46% higher. MercadoLibre Inc (MELI) has a Forward Free Cash Flow (FCF) yield of approximately 8.22%. Compared to its 3-year average FCF yield of 6.03%, the current FCF yield is approximately 36.27% lower. Relative to its 5-year average FCF yield of 4.07% , the current FCF yield is about 101.78% lower.
16.77
P/B
Median3y
25.72
Median5y
-13.81
8.22
FCF Yield
Median3y
6.03
Median5y
4.07
Competitors Valuation Multiple
The average P/S ratio for MELI's competitors is 2.05, providing a benchmark for relative valuation. MercadoLibre Inc Corp (MELI) exhibits a P/S ratio of 3.07, which is 49.32% above the industry average. Given its robust revenue growth of 39.48%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MELI increased by 21.52% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.31B to 7.41B.
The secondary factor is the P/E Change, contributed 6.00%to the performance.
Overall, the performance of MELI in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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