MELI PE Ratio & Valuation,Is MELI Overvalued

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 2.91 is considered Fairly compared with the five-year average of 132.29. The fair price of MercadoLibre Inc (MELI) is between 1913.02 to 5106.01 according to relative valuation methord.

Relative Value

Fair Zone

1913.02-5106.01

Current Price：2162.61

Fair

39.77

21.92

EV/EBITDA

MercadoLibre Inc. (MELI) has a current EV/EBITDA of 21.92. The 5-year average EV/EBITDA is 49.23. The thresholds are as follows: Strongly Undervalued below -41.42, Undervalued between -41.42 and 3.91, Fairly Valued between 94.56 and 3.91, Overvalued between 94.56 and 139.88, and Strongly Overvalued above 139.88. The current Forward EV/EBITDA of 21.92 falls within the Historic Trend Line -Fairly Valued range.

27.60

EV/EBIT

MercadoLibre Inc. (MELI) has a current EV/EBIT of 27.60. The 5-year average EV/EBIT is 72.96. The thresholds are as follows: Strongly Undervalued below -90.79, Undervalued between -90.79 and -8.92, Fairly Valued between 154.84 and -8.92, Overvalued between 154.84 and 236.72, and Strongly Overvalued above 236.72. The current Forward EV/EBIT of 27.60 falls within the Historic Trend Line -Fairly Valued range.

2.91

MercadoLibre Inc. (MELI) has a current PS of 2.91. The 5-year average PS is 5.33. The thresholds are as follows: Strongly Undervalued below -0.04, Undervalued between -0.04 and 2.64, Fairly Valued between 8.02 and 2.64, Overvalued between 8.02 and 10.71, and Strongly Overvalued above 10.71. The current Forward PS of 2.91 falls within the Historic Trend Line -Fairly Valued range.

10.52

P/OCF

MercadoLibre Inc. (MELI) has a current P/OCF of 10.52. The 5-year average P/OCF is 29.77. The thresholds are as follows: Strongly Undervalued below -18.84, Undervalued between -18.84 and 5.46, Fairly Valued between 54.08 and 5.46, Overvalued between 54.08 and 78.38, and Strongly Overvalued above 78.38. The current Forward P/OCF of 10.52 falls within the Historic Trend Line -Fairly Valued range.

11.58

P/FCF

MercadoLibre Inc. (MELI) has a current P/FCF of 11.58. The 5-year average P/FCF is 106.14. The thresholds are as follows: Strongly Undervalued below -300.16, Undervalued between -300.16 and -97.01, Fairly Valued between 309.29 and -97.01, Overvalued between 309.29 and 512.44, and Strongly Overvalued above 512.44. The current Forward P/FCF of 11.58 falls within the Historic Trend Line -Fairly Valued range.

MercadoLibre Inc (MELI) has a current Price-to-Book (P/B) ratio of 16.02. Compared to its 3-year average P/B ratio of 25.47 , the current P/B ratio is approximately -37.09% higher. Relative to its 5-year average P/B ratio of -14.39, the current P/B ratio is about -211.34% higher. MercadoLibre Inc (MELI) has a Forward Free Cash Flow (FCF) yield of approximately 8.60%. Compared to its 3-year average FCF yield of 6.14%, the current FCF yield is approximately 40.09% lower. Relative to its 5-year average FCF yield of 4.19% , the current FCF yield is about 105.27% lower.

16.02

P/B

Median3y

25.47

Median5y

-14.39

8.60

FCF Yield

Median3y

6.14

Median5y

4.19

Competitors Valuation Multiple

The average P/S ratio for MELI's competitors is 2.00, providing a benchmark for relative valuation. MercadoLibre Inc Corp (MELI) exhibits a P/S ratio of 2.91, which is 45.48% above the industry average. Given its robust revenue growth of 39.48%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MELI increased by 12.51% 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 -3.01%to the performance.

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

39.48%

5.31B → 7.41B

Revenue Growth

-23.96%

7.47 → 5.68

Margin Expansion

-3.01%

49.67 → 48.18

P/E Change

12.51%

1.92K → 2.16K

Mkt Cap Growth

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Frequently Asked Questions

Is MercadoLibre Inc (MELI) currently overvalued or undervalued?

What is MercadoLibre Inc (MELI) fair value?

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. The fair price of MercadoLibre Inc (MELI) is between 1913.02 to 5106.01 according to relative valuation methord.

How does MELI's valuation metrics compare to the industry average?

What is the current P/B ratio for MercadoLibre Inc (MELI) as of Jan 08 2026?

As of Jan 08 2026, MercadoLibre Inc (MELI) has a P/B ratio of 16.02. This indicates that the market values MELI at 16.02 times its book value.

What is the current FCF Yield for MercadoLibre Inc (MELI) as of Jan 08 2026?

As of Jan 08 2026, MercadoLibre Inc (MELI) has a FCF Yield of 8.60%. This means that for every dollar of MercadoLibre Inc’s market capitalization, the company generates 8.60 cents in free cash flow.

What is the current Forward P/E ratio for MercadoLibre Inc (MELI) as of Jan 08 2026?

As of Jan 08 2026, MercadoLibre Inc (MELI) has a Forward P/E ratio of 39.77. This means the market is willing to pay $39.77 for every dollar of MercadoLibre Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for MercadoLibre Inc (MELI) as of Jan 08 2026?

As of Jan 08 2026, MercadoLibre Inc (MELI) has a Forward P/S ratio of 2.91. This means the market is valuing MELI at $2.91 for every dollar of expected revenue over the next 12 months.

MELI Valuation