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MercadoLibre, Inc. (MELI) Stock Analysis

Score B

Growth · Grade A · Bearish

Consumer Cyclical · Internet Retail

$1,664.42

Fair Value

$3,157.47

+89.7%

Conviction

10/10

Quality

A

Classification

Growth

Investment Thesis

Gran empresa, NO gran precio. La calidad justifica mantener pero la asimetria no es atractiva para nuevas posiciones.

No strong signal in either direction.

For New Investors

Precio por encima del rango de valor modelado

For Current Holders

Puntuacion cuantitativa: neutral

Buy if

  • El precio cae 15-20% (mejora la asimetria)
  • Se materializan catalizadores del escenario alcista
  • Correccion general del mercado crea oportunidad

Sell if

  • Ocurren detonantes del escenario bajista
  • Metricas de calidad se deterioran (ROIC en declive)
  • Surgen mejores alternativas

Valuation

Fair Value estimate: $3157.47 (+89.7%). Significantly undervalued.

PEG-Based EPS

$3,302.66

FCF DCF Model

$4,993.26

EV/EBITDA

$2,095.57

Blended Fair Value

$3,157.47

Confidence

Medium

Methods

PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple

Quality Analysis

A

102/120 points

Investable

ROE (3Y Avg)

35.2%

ROIC-WACC Spread

9.8%

D/E Ratio

1.7x

Current Ratio

1.2x

Interest Coverage

22x

FCF Positive Years

3/3

Quality Flags

  • Apalancamiento: D/E 1.7x (2/15 pts)

Market Sentiment

Wall Street Consensus

$2,150.00

+29.2% Upside

25 analysts

Range: $1,750.00$2,600.00

Rating: Buy

Our model is slightly more cautious than Wall Street.

Trend & Technical

Bearish

Price ($1664.42) is 18.4% below SMA 200 ($2039.40). Bearish trend. Caution on entry.

Technical Score46/100

Tech Score 46/100 — Weak technicals. Bearish bias in trend or momentum.

Risk & Reward

Asymmetry Ratio

8.09:1

Expected Return

+57.4%

Bull Upside

+80.9%

Bear Downside

-10.0%

Excelente asimetria: ratio 8.09:1. El potencial alcista supera ampliamente el riesgo bajista.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

Buy Zone & Action Plan

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Technical Analysis

RSI, MACD, moving averages, trend signals, and momentum indicators.

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Frequently Asked Questions

What is the fair value of MELI?

Based on our multi-method conviction analysis, the estimated fair value of MercadoLibre, Inc. (MELI) is $3,157.47. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.

Is MELI a buy, sell, or hold?

MELI currently has a HOLD rating with a conviction score of 10/10. Gran empresa, NO gran precio. La calidad justifica mantener pero la asimetria no es atractiva para nuevas posiciones. Precio por encima del rango de valor modelado.

Is MELI a high-quality stock?

MercadoLibre, Inc. has a quality grade of A (102/120 points), rated as Investable. Key metrics include ROE of 35.2%, ROIC-WACC spread of 9.8%, and D/E ratio of 1.7x.

What type of stock is MELI?

MELI is classified as a "growth" in our framework. Alto crecimiento de ingresos: 38.6%, P/E alto: 43.9x, Dividendo bajo (reinvierte): 0.0%, Alto rendimiento FCF: 12.8%, Alta deuda: D/E 1.7x

What do Wall Street analysts say about MELI?

25 Wall Street analysts have a consensus price target of $2,150.00 for MELI, representing +29.2% upside. Targets range from $1,750.00 to $2,600.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.

What are the risks of investing in MELI?

The risk/reward asymmetry ratio for MELI is 8.09:1, rated as Very Favorable. Excelente asimetria: ratio 8.09:1. El potencial alcista supera ampliamente el riesgo bajista. The expected return is +57.4%, with bull case upside of +80.9% and bear case downside of -10.0%.

What is the current trend for MELI?

MELI is in a bearish trend. Price ($1664.42) is 18.4% below SMA 200 ($2039.40). Bearish trend. Caution on entry. The technical score is 46/100.

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Last updated: May 25, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.