MELI Analysis — TradeApes

MERCADOLIBRE INC (MELI)

Technology Diversified Services

$1,978.36 close · Sep 05, 2026

Undervalued (Low) Est. $85.94–$17,314.14 56 Health · Mixed

Above 50 & 200 SMA

52W -16.2% from High

Methodology Breakdown

Mature

Our Estimate

$85.94 – $17,314.14 Wide range

Low confidence: our methods span $85.94–$17,314.14, so we lean on the range rather than a single number. Today's price $1,936.20 sits within it.

Method	Value	Role
DCF (Base Case)	$5,121.11	IN ESTIMATE
DCF (TTM-anchored)	$29,507.18	IN ESTIMATE
Peer Multiples	$85.94	IN ESTIMATE
Earnings Power Value	$132.42	CROSS-CHECK
Book Value Anchor	$433.75	CROSS-CHECK
Earnings Anchor	$186.30	CROSS-CHECK
Cash Floor	$102.80	CROSS-CHECK
NAV Anchor	$433.75	CROSS-CHECK

In estimate — combined into our number · Cross-check — computed for context, not counted

The methods agree on direction (under- or over-valued) but their dollar values diverge, so we show a range rather than one number.

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength

Operating Trend

Valuation

Overvalued 42

Capital Allocation

Risk Management

Positives

↑ free-cash-flow margin +3.6

↑ FCF margin + growth +4.8

↑ free-cash-flow yield +4.1

Concerns

↓ multiple vs own 5-yr history -3.7

↓ margin expansion -1.5

↓ operating-margin trend + inflection -3.0

Signal contribution: +20.3 from strengths -13.1 from concerns

Health Score Trend 9 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.	35.18B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	15.01B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	2.91B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.86B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	13.91B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	3.89B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	10.63B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	3.65B

Valuation

Market Cap	100.30B
Enterprise Value	109.82B
EV / Revenue	3.1x
EV / EBITDA	28.2x
P/E (TTM)	53.8x
Forward P/E (extrapolated)	30.6x
PEG	—
P/FCF	7.2x
FCF Yield	13.9%

EV/EBITDA vs history — 92% percentile (historically expensive)

CheapMidExpensive

EV/Sales vs history — 56% percentile (mid-range)

CheapMidExpensive

P/Book vs history — 69% percentile (historically expensive)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

3.1x

Book Value / Share

$154.53

Price / Book

12.8x

P/E (TTM)

53.8x

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.	42.7%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	11.1%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	5.3%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	39.5%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	46.0%
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.	-9.3%
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.	1.30

Community Sentiment

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Quarterly Financials

Metric	Q2 '26	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '24	Q3 '24	Q2 '24	Q1 '24	Q '23	Q3 '24
Revenue ?Total quarterly sales from primary business operations.	10.17B	8.85B	8.76B	7.41B	6.79B	5.94B	6.06B	5.31B	5.07B	4.33B	4.41B	3.93B
Gross Profit ?Quarterly revenue minus cost of goods sold.	4.16B	3.86B	3.78B	3.21B	3.09B	2.77B	2.75B	2.44B	2.37B	2.02B	2.05B	2.10B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	683.0M	611.0M	889.0M	724.0M	825.0M	763.0M	820.0M	557.0M	726.0M	528.0M	335.0M	785.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	466.0M	417.0M	559.0M	421.0M	523.0M	494.0M	639.0M	397.0M	531.0M	344.0M	165.0M	359.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	3.66B	2.08B	5.21B	2.96B	2.92B	1.03B	3.48B	1.38B	1.70B	1.37B	1.75B	815.0M

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.