MELI

MercadoLibre, Inc.

Fundamental data last updated:July 6, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

NASDAQ

County of HQ

UY

Next Earnings Date

08/05/2026

Business Summary

MercadoLibre, Inc. operates as a prominent provider of digital commerce platforms throughout Latin America. Its primary service, the Mercado Libre Marketplace, is an automated online system allowing businesses, independent vendors, and private individuals to list merchandise and finalize sales. Supporting this, the Mercado Pago FinTech platform offers a financial technology solution, facilitating transactions both on and off its e-commerce sites by enabling users to securely send and receive online payments and transfer funds via web and mobile applications. The company further expands its financial offerings through Mercado Fondo, a service that permits users to invest balances held in their Mercado Pago accounts, and Mercado Credito, which extends credit options to qualified merchants and consumers. For logistics, Mercado Envios provides a comprehensive solution, empowering sellers on its platform to utilize third-party delivery services and other logistical partners, including warehousing and fulfillment capabilities. Beyond these core services, MercadoLibre also runs Mercado Libre Classifieds, an online classifieds platform for motor vehicles, real estate, and professional services. Mercado Libre Ads serves as an advertising platform, assisting major retailers and brands in promoting their products and services across the internet. Lastly, Mercado Shops offers a solution for users to establish, manage, and market their personalized online storefronts. Founded in 1999, MercadoLibre, Inc. is headquartered in Montevideo, Uruguay.

 


VALUATION

P/E

46.56

Market Cap ($M USD)

$89.40B

Forward P/E

10.08

PEG

0.03

PRICE TO SALES

2.81

PRICE TO BOOK

12.28

EV / EBITDA

28.96

5-Year Average P/E

Free Cash Flow Yield

11.98%

DCF Value

$466.68

Graham Number

$349.83

Price to FCF

8.35

EV to FCF

9.16

Earnings Yield

2.15%

FCF Yield

11.98%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$37.87

Next Year EPS Growth Estimate

$175.00

Next Year Revenue Growth Estimate

$9.47T

Return on Equity (ROE)

29.58%

FREE CASH FLOW

Operating Margin

9.59%

Debt-to-Equity

1.69

Piotroski F-Score

5

Altman Z-Score

2.52

Return on Invested Capital (ROIC)

20.37%

Current Ratio

1.16

Quick Ratio

1.14

Net Debt to EBITDA

2.56

Interest Coverage

17.52

Gross Profit margin

43.86%

FCF PER SHARE

$211.21

REVENUE PER SHARE

$627.32

Gainseekers Quantitative Analysis

Summary

MercadoLibre’s valuation paints a complex picture. The stock has traded significantly above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 8.50 and a remarkably low PEG ratio of 0.02 indicate that the market expects robust growth. The Altman Z-score of 2.42 suggests moderate financial stability, while the Earnings Yield of 2.40% is less compelling. This juxtaposition of high growth expectations with a premium price tag demands careful consideration.

AI Exposure / Tech Reliance

Operating in the Specialty Retail sector, MercadoLibre is well-positioned to leverage AI and tech advancements. Its focus on e-commerce and fintech solutions allows it to integrate cutting-edge technology seamlessly. This adaptability is crucial for maintaining a competitive edge in a rapidly evolving digital landscape.

The Bull Case

For the discerning GARP investor, MercadoLibre offers compelling reasons to buy. With an impressive ROIC of 20.37%, the company demonstrates efficient capital allocation. A Free Cash Flow Yield of 13.39% underscores its ability to generate cash, while a Piotroski F-Score of 6 indicates solid financial health. These metrics suggest strong pricing power and operational efficiency, making it an attractive investment.

The Bear Case

Despite its strengths, MercadoLibre is not without risks. The Price/Book ratio of 10.98 and Price/Sales of 2.51 signal a potentially overvalued stock. Its technical position, trading close to its 52-week high, raises concerns about overextension. Additionally, the Operating Margin of 9.59% leaves room for improvement, highlighting potential vulnerabilities in cost management.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$2,166.67

Institutional Ownership %

1-Year Beta

1.35

Insider Buying % (6 Mo)

Distance to 52-Week High

44.53%

Distance to 52-Week Low

15.22%

EARNINGS SURPRISE %

-5.94%

50-DAY SMA

$1684.19

200-DAY SMA

$1942.59

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.