MercadoLibre Inc. (MELI) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of MercadoLibre Inc. $1,979, price $1,754, upside +12.8%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 25, 2026.
How to read this chart
60‑month range $612.70 – $2,614 · fair‑value band $1,385 – $2,573 · the $1,754 price screens below the $1,979 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 25, 2026.
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MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.
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MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates Mercado Libre Marketplace, an online commerce platform that can be accessed through mobile app or website; and Mercado Pago, a financial technology solution platform, which offers comprehensive set of financial technology services to users and other users of its e-commerce platform. It also provides Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which grants loans and obtains better funding alternatives; and Mercado Mercado Envios that facilitates the shipping of goods from the Company and sellers to buyers. In addition, the company provides Mercado Libre Classifieds, where users can list vehicles, properties, and services; Mercado Ads, an advertising platform, which enables retailers and brands to promote their products and services on the platform. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
Stock analysis
MercadoLibre Inc. (MELI) currently trades at $1,754, while our model-based Fair Value estimate is $1,979, implying the stock looks roughly 11.4% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $2,597 per share, and 11 of the 24 models we run sit above the $1,754 price.
Bear case: the Economic Profit group reads lowest at $392.06, and 13 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $1,385 (bear) to $2,573 (bull), the price of $1,754 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
MercadoLibre Inc. reported revenue of $28.9B in FY2025 versus $7.1B in FY2021, a compound +42.2%/yr. Reported net income was $2.0B in FY2025, compounding +121.5%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap $88.9B · P/E ratio 45.8 · P/S ratio 3.17 · EPS (TTM) $38.26 · Net margin 6.9% · Return on equity 31.3% · Return on assets (EBIT) 8.5% · Operating margin 6.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The share trades about 30% below its 52-week high and 13% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 10% fair-value upside, at 13%, MELI screens cheaper than that median.
Fair Value models
Bear $1,385Fair Value $1,979Bull $2,573
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($28.09 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+39.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+38.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+48.7%
Start year 2020 (pandemic). Over 10 years: +46.1% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+52.7%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+84.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+84.8%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.88% vs 32%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 11%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−5.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+25.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −7.5% a year for the price and +22.9% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Internet Retail · 108 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside+13% · Above median
Profitability
Return on equity (TTM)31% · Top 25%
Return on assets5% · Top 25%
Net margin (TTM)6% · Above median
Operating margin (TTM)7% · Top 25%
Growth and dividend
Revenue growth49% · Top 25%
Balance sheet
Debt / equity0.67× · Highest 25%
Valuation Multiplesvs Internet Retail median · lower = cheaper
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Cite: Fair Value Calculator (2026). "MercadoLibre Inc. Fair Value". https://www.fairvalue-calculator.com/stock/MELI
Frequently asked questions
Is MercadoLibre Inc. (MELI) overvalued or undervalued?
As of Sep 25, 2026, our model estimates a fair value of $1,979 versus a price of $1,754, about +13% upside (undervalued).
What is the fair value of MELI?
Our model-based fair value for MercadoLibre Inc. is $1,979 (as of Sep 25, 2026), built from audited fundamentals. The current price: $1,754.
What is the quality score of MELI?
MercadoLibre Inc. has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for MercadoLibre Inc. (MELI)?
Our model-based price target is the fair value of $1,979 (as of Sep 25, 2026) from 24 valuation models. Cautious scenario $1,385, optimistic scenario $2,573. It is a calculation from audited fundamentals, not an analyst target.
What is the MercadoLibre Inc. stock forecast for 2026?
Our models put fair value at $1,979, about +13% upside versus a price of $1,754 (undervalued). Cautious scenario $1,385, optimistic scenario $2,573. The calculation is refreshed regularly with new filings.
What is the revenue of MercadoLibre Inc. (MELI)?
MercadoLibre Inc. reported trailing-twelve-month revenue of about $31.8B (latest available figure, as of Sep 25, 2026).
What growth is priced into MercadoLibre Inc. (MELI)?
For today's price to be fair in a discounted-cash-flow model, MercadoLibre Inc. would have to grow free cash flow by -5.3 % per year for five years (discount rate 10.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +48.7 % per year. As of Sep 25, 2026.
What discount rate (WACC) does the fair value of MELI use?
Our models discount MercadoLibre Inc. at 10.0 %: a base by market capitalisation (large), damped by beta 1.35, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For MercadoLibre Inc. that is -5.3 % per year a year over ten years, using the same discount rate (10.0 %) and the same formula as our fair value.
How much growth has MercadoLibre Inc. (MELI) delivered so far?
Over the past 5 years revenue at MercadoLibre Inc. grew +48.7 % a year. The price currently implies -5.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of MercadoLibre Inc. (MELI) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into MercadoLibre Inc. (-5.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of MercadoLibre Inc. (MELI)?
The free-cash-flow yield on the price is 12.11 %: that much free cash flow MercadoLibre Inc. produces per unit of market value. When it exceeds the discount rate of our models (10.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of MercadoLibre Inc. (MELI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For MercadoLibre Inc. it is $1,979 per share (as of Sep 25, 2026), against a price of $1,754. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is MercadoLibre Inc. stock overvalued or undervalued in 2026?
As of Sep 25, 2026, MELI trades below its calculated fair value: price $1,754, fair value $1,979, a gap of about +13% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MELI?
No. The price is what the market pays today ($1,754); the fair value is what the company's own numbers justify ($1,979). For MercadoLibre Inc. the two are $225.03 per share apart. That gap is exactly why we show both numbers side by side.
How much is MercadoLibre Inc. worth?
The market values MercadoLibre Inc. at about $88.9B (market capitalisation, as of Sep 25, 2026). Per share that is $1,754; our models calculate a fair value of $1,979 per share.
What do the bullish and bearish scenarios say about MELI?
Our models span a range for MercadoLibre Inc.: cautious scenario $1,385, base $1,979, optimistic $2,573 per share (as of Sep 25, 2026, price $1,754). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MELI?
MercadoLibre Inc. trades at a price-to-earnings ratio of 45.8 (as of Sep 25, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $1,979 is built from several models across several years. Other multiples: PEG 1.1, P/B 13.2, P/S 2.8, EV/EBITDA 22.8.
What is the PEG ratio of MELI?
The PEG ratio of MercadoLibre Inc. is 1.14 (P/E divided by earnings growth, as of Sep 25, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of MercadoLibre Inc. (MELI)?
Balance-sheet figures for MercadoLibre Inc. (as of Sep 25, 2026): return on equity 31.3%, debt of 0.67 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is MELI from its 52-week high?
MercadoLibre Inc. trades at $1,754, about 30% below its 52-week high of $2,511 and 13% above the low of $1,547 (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of $1,979 is for.
Which stocks are comparable to MercadoLibre Inc.?
From the same area (Consumer Cyclical) we also value Amazon.com, Inc, Alibaba Group, DoorDash, Inc, Sea Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is MercadoLibre Inc. stock attractive at the current price?
The data as of Sep 25, 2026: price $1,754, calculated fair value $1,979 (+13%), Quality Score 59/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MELI calculated?
We run MercadoLibre Inc. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $1,979, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. MercadoLibre Inc. currently trades 13 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of MercadoLibre Inc. (MELI)?
The closing price on Sep 24, 2026 was $1,754. Our model-based fair value is $1,979, about +13% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with MercadoLibre Inc. right now?
A fairly wide model range ($1,385 to $2,573) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of MercadoLibre Inc. (MELI) come from?
Earnings per share at MercadoLibre Inc. grew +33.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +44.5 %, EBIT margin −5.9 %, tax rate +0.5 %, residual (interest, one-offs) −2.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of MercadoLibre Inc.
How large is the market capitalisation of MercadoLibre Inc. (MELI)?
The market capitalisation of MercadoLibre Inc. is $88.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of MercadoLibre Inc. (MELI)?
The price-to-sales ratio of MercadoLibre Inc. is 3.17 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of MercadoLibre Inc. (MELI)?
Earnings per share at MercadoLibre Inc. are $38.26 (price ÷ EPS = P/E 45.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of MercadoLibre Inc. (MELI)?
The net margin of MercadoLibre Inc. is 6.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of MercadoLibre Inc. (MELI)?
The return on equity (ROE) of MercadoLibre Inc. is 31.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of MercadoLibre Inc. (MELI)?
On an EBIT basis the return on assets of MercadoLibre Inc. is 8.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of MercadoLibre Inc. (MELI)?
The operating margin of MercadoLibre Inc. is 6.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at MercadoLibre Inc. (MELI)?
Revenue at MercadoLibre Inc. is growing +49.0% versus a year earlier (3y avg +38.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at MercadoLibre Inc. (MELI)?
Earnings per share at MercadoLibre Inc. are growing −15.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does MercadoLibre Inc. (MELI) carry?
The net debt of MercadoLibre Inc. is $7.7B (fiscal year 2025, ≈ 0.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 25, 2026