MercadoLibre

OVERVALUEDMELI · NASDAQ · Consumer Cyclical
MELI·NASDAQ·Consumer Cyclical
OVERVALUED
MercadoLibre
32.4%downside
MARKET PRICE
$1807.55
FAIR PRICE
$1222.69
MARGIN
$584.86
UNDERVALUEDFAIROVERVALUED
P/E RATIO
43.7x
DIV. YIELD
N/A
ROE
39.0%
MARKET CAP
$91B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

32.4%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$1807.55

FAIR PRICE

$1222.69

MARGIN

$584.86

UNDERVALUEDFAIROVERVALUED

P/E Ratio

43.7x

What is P/E? →

Div. Yield

N/A

ROE

39.0%

Exceptional

Market Cap

$91B

Large-cap

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FPI RATING

5.4/ 10

Consistent growth trajectory and high-quality fundamentals, but volatile earnings pattern.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$978.15CONSERVATIVE ENTRY
$1222.69FAIR PRICE
$1807.55MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$978.15

Fair price × 0.80

DISTANCE

45.9%

Price to entry level

At the current price of $1807.55, MELI trades 45.9% above the conservative entry level of $978.15. This entry level represents a 20% margin of safety below the calculated fair price of $1222.69 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate MELI's fair price

MercadoLibre's fair price of $1222.69 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $1807.55, MELI trades 32.4% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting MELI's risk profile.

RELATIVE · 30%

Comparing MELI's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for MELI, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate MELI's fair value with your own inputs.

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FAQ

What is the fair price of MELI?+

Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for MercadoLibre is $1222.69. At the current market price of $1807.55, MELI trades 32.4% above its calculated fair value.

Is MELI overvalued or undervalued?+

MercadoLibre is currently overvalued based on our valuation model. The stock trades at $1807.55, which is 32.4% above the fair price of $1222.69. The P/E ratio of 43.7x is a key metric in the valuation.

What is the margin of safety for MELI?+

With a 20% margin of safety applied to the fair price of $1222.69, the conservative entry level for MELI is $978.15. At the current market price of $1807.55, the stock trades 45.9% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is MELI's fair price updated?+

We update fair price calculations for MELI daily after market close. The current fair price of $1222.69 incorporates the latest market data and sector multiples.

What factors affect MELI's fair price calculation?+

MELI's fair price of $1222.69 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 43.7x, ROE of 39.0%.

Is MELI a good buy right now?+

At $1807.55, MELI trades 32.4% above our fair value estimate of $1222.69. The stock is currently overvalued. ROE stands at 39.0% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does MELI pay dividends?+

MELI does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.