MercadoLibre Valuation

Is MELI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MELI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MELI (ARS19400) is trading above our estimate of fair value (ARS7468.92)

Significantly Below Fair Value: MELI is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MELI?

Key metric: As MELI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MELI. This is calculated by dividing MELI's market cap by their current earnings.
What is MELI's PE Ratio?
PE Ratio74.4x
EarningsUS$1.44b
Market CapUS$106.46b

Price to Earnings Ratio vs Peers

How does MELI's PE Ratio compare to its peers?

The above table shows the PE ratio for MELI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
PDD PDD Holdings
9.2x14.1%US$139.8b
PRX Prosus
13.9x4.8%€90.5b
WES Wesfarmers
32x8.2%AU$81.8b
CPNG Coupang
44x30.1%US$45.0b
MELI MercadoLibre
74.4x28.0%AR$106.5b

Price-To-Earnings vs Peers: MELI is expensive based on its Price-To-Earnings Ratio (74.4x) compared to the peer average (24.7x).


Price to Earnings Ratio vs Industry

How does MELI's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MELI 74.4xIndustry Avg. 20.3xNo. of Companies20PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MELI is expensive based on its Price-To-Earnings Ratio (74.4x) compared to the Global Multiline Retail industry average (20.2x).


Price to Earnings Ratio vs Fair Ratio

What is MELI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MELI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio74.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MELI's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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