MELI Analysis — TradeApes

MERCADOLIBRE INC (MELI)

Technology Diversified Services

$1,832.42 close · Jul 21, 2026

Above 50 SMA

52W -28.0% from High

Methodology Breakdown

Methods agree on direction (under/over-valued) but the magnitudes diverge widely. The zone is defensible; the specific dollar isn't.

Method	Value	Role
DCF (Base Case)	$5,665.91	REFERENCE
DCF (TTM-anchored)	$30,727.42	REFERENCE
Peer Multiples	$66.67	REFERENCE
Earnings Power Value	$167.70	REFERENCE
Book Value Anchor	$401.75	REFERENCE
Earnings Anchor	$173.55	REFERENCE
Cash Floor	$78.01	REFERENCE
NAV Anchor	$401.75	REFERENCE

Verdict basis:


              direction_agreement

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 60

Operating Trend 60

Valuation 20

Capital Allocation 40

Risk Management 70

Positives

↑ High FCF yield — above 7%, strong cash return relative to price paid +3.8

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ High ROIC — above 20%, excellent return on invested capital +2.5

Concerns

↓ Historically expensive — EV/EBITDA in top 20% of its 5-year range -6.3

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

↓ Debt increasing — total debt up more than 10% year over year -1.5

Signal contribution: +10.1 from strengths -15.1 from concerns

Health Score Trend 8 snapshots

Cross-Check: Greenblatt Magic Formula

⚠ Mild Divergence

Earnings Yield

3.4%

Rank 826 / 1256

Return on Capital

64.8%

Rank 440 / 1256

Combined Rank

44th pctl

1256 companies ranked

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	31.80B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	13.95B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	3.05B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.92B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	13.16B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	3.94B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	9.93B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	3.68B

Valuation

Market Cap	92.90B
Enterprise Value	101.57B
EV / Revenue	3.2x
EV / EBITDA	25.8x
P/E (TTM)	48.4x
Forward P/E (extrapolated)	27.4x
PEG	—
P/FCF	7.1x
FCF Yield	14.2%

EV/EBITDA vs history — 80% percentile (historically expensive)

CheapMidExpensive

EV/Sales vs history — 68% percentile (historically expensive)

CheapMidExpensive

P/Book vs history — 68% percentile (historically expensive)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

3.2x

Book Value / Share

$143.62

Price / Book

12.8x

P/E (TTM)

48.4x

Price / Sales

2.9x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	43.9%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	12.4%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	6.0%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	41.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	42.1%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	-6.8%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	4 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	1.35

Community Sentiment

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Quarterly Financials

Metric	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '24	Q3 '24	Q2 '24	Q1 '24	Q '23	Q3 '24	Q2 '24
Revenue ?Total quarterly sales from primary business operations.	8.85B	8.76B	7.41B	6.79B	5.94B	6.06B	5.31B	5.07B	4.33B	4.41B	3.93B	3.59B
Gross Profit ?Quarterly revenue minus cost of goods sold.	3.86B	3.78B	3.21B	3.09B	2.77B	2.75B	2.44B	2.37B	2.02B	2.05B	2.10B	1.83B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	611.0M	889.0M	724.0M	825.0M	763.0M	820.0M	557.0M	726.0M	528.0M	335.0M	785.0M	669.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	417.0M	559.0M	421.0M	523.0M	494.0M	639.0M	397.0M	531.0M	344.0M	165.0M	359.0M	262.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	2.08B	5.21B	2.96B	2.92B	1.03B	3.48B	1.38B	1.70B	1.37B	1.75B	815.0M	1.30B

Revenue & Free Cash Flow

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.