MELI

MercadoLibre, Inc.

Fundamental data last updated:May 13, 2026

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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 online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Libre Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

 


VALUATION

P/E

41.12

Market Cap ($M USD)

$78.95B

Forward P/E

8.39

PEG

0.02

PRICE TO SALES

2.48

PRICE TO BOOK

10.84

EV / EBITDA

19.75

5-Year Average P/E

Free Cash Flow Yield

13.56%

DCF Value

$716.18

Graham Number

$349.83

Price to FCF

7.37

EV to FCF

6.18

Earnings Yield

2.43%

FCF Yield

13.56%

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

$185.60

Next Year Revenue Growth Estimate

$8.90T

Return on Equity (ROE)

29.58%

FREE CASH FLOW

Operating Margin

9.59%

Debt-to-Equity

1.69

Piotroski F-Score

6

Altman Z-Score

2.42

Return on Invested Capital (ROIC)

20.37%

Current Ratio

1.16

Quick Ratio

1.14

Net Debt to EBITDA

-3.79

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

$2,212.50

Institutional Ownership %

1-Year Beta

1.41

Insider Buying % (6 Mo)

Distance to 52-Week High

69.86%

Distance to 52-Week Low

1.32%

EARNINGS SURPRISE %

-5.94%

50-DAY SMA

$1753.22

200-DAY SMA

$2073.82

⚠️ 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.