MELI Valuation

MercadoLibre Inc

Add to Watchlist

Advanced Chart

2472.910

+0.62(0.025%)1D

Overview
Forecast
Valuation
Earnings

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 3.95 is considered Fairly compared with the five-year average of 191.92. The fair price of MercadoLibre Inc (MELI) is between 1654.93 to 5038.43 according to relative valuation methord.

Relative Value

Fair Zone

1654.93-5038.43

Current Price：2472.91

Fair

45.78

Trailing

Forward

26.67

EV/EBITDA

MercadoLibre Inc. (MELI) has a current EV/EBITDA of 26.67. The 5-year average EV/EBITDA is 65.34. The thresholds are as follows: Strongly Undervalued below -73.83, Undervalued between -73.83 and -4.25, Fairly Valued between 134.92 and -4.25, Overvalued between 134.92 and 204.51, and Strongly Overvalued above 204.51. The current Forward EV/EBITDA of 26.67 falls within the Historic Trend Line -Fairly Valued range.

33.31

EV/EBIT

MercadoLibre Inc. (MELI) has a current EV/EBIT of 33.31. The 5-year average EV/EBIT is 107.68. The thresholds are as follows: Strongly Undervalued below -180.49, Undervalued between -180.49 and -36.40, Fairly Valued between 251.76 and -36.40, Overvalued between 251.76 and 395.84, and Strongly Overvalued above 395.84. The current Forward EV/EBIT of 33.31 falls within the Historic Trend Line -Fairly Valued range.

3.95

MercadoLibre Inc. (MELI) has a current PS of 3.95. The 5-year average PS is 6.05. The thresholds are as follows: Strongly Undervalued below -0.67, Undervalued between -0.67 and 2.69, Fairly Valued between 9.41 and 2.69, Overvalued between 9.41 and 12.77, and Strongly Overvalued above 12.77. The current Forward PS of 3.95 falls within the Historic Trend Line -Fairly Valued range.

26.58

P/OCF

MercadoLibre Inc. (MELI) has a current P/OCF of 26.58. The 5-year average P/OCF is 59.34. The thresholds are as follows: Strongly Undervalued below -254.55, Undervalued between -254.55 and -97.61, Fairly Valued between 216.28 and -97.61, Overvalued between 216.28 and 373.22, and Strongly Overvalued above 373.22. The current Forward P/OCF of 26.58 falls within the Historic Trend Line -Fairly Valued range.

19.76

P/FCF

MercadoLibre Inc. (MELI) has a current P/FCF of 19.76. The 5-year average P/FCF is 112.98. The thresholds are as follows: Strongly Undervalued below -297.08, Undervalued between -297.08 and -92.05, Fairly Valued between 318.01 and -92.05, Overvalued between 318.01 and 523.04, and Strongly Overvalued above 523.04. The current Forward P/FCF of 19.76 falls within the Historic Trend Line -Fairly Valued range.

MercadoLibre Inc (MELI) has a current Price-to-Book (P/B) ratio of 21.94. Compared to its 3-year average P/B ratio of 26.57 , the current P/B ratio is approximately -17.39% higher. Relative to its 5-year average P/B ratio of -12.91, the current P/B ratio is about -269.92% higher. MercadoLibre Inc (MELI) has a Forward Free Cash Flow (FCF) yield of approximately 5.89%. Compared to its 3-year average FCF yield of 5.65%, the current FCF yield is approximately 4.19% lower. Relative to its 5-year average FCF yield of 3.74% , the current FCF yield is about 57.51% lower.

21.94

P/B

Median3y

26.57

Median5y

-12.91

5.89

FCF Yield

Median3y

5.65

Median5y

3.74

Competitors Valuation Multiple

The average P/S ratio for MELI's competitors is 2.73, providing a benchmark for relative valuation. MercadoLibre Inc Corp (MELI) exhibits a P/S ratio of 3.95, which is 44.65% above the industry average. Given its robust revenue growth of 33.85%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MELI increased by 20.51% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.07B to 6.79B.

The secondary factor is the P/E Change, contributed 13.12%to the performance.

Overall, the performance of MELI in the past 1 year is driven by Revenue Growth. Which is more sustainable.

33.85%

5.07B → 6.79B

Revenue Growth

-26.46%

10.47 → 7.70

Margin Expansion

13.12%

53.99 → 61.07

P/E Change

20.51%