Mercadolibre Z Score

MELI
 Stock
  

USD 636.87  23.26  3.52%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Additionally, see Mercadolibre Piotroski F Score and Mercadolibre Valuation analysis.
  
Refresh
Mercadolibre Market Capitalization is most likely to increase significantly in the upcoming years. The last year's value of Market Capitalization was reported at 66.69 Billion. The current Working Capital is estimated to increase to about 2.5 B, while Capital Expenditure is projected to decrease to (588 M). Mercadolibre Cost of Revenue is most likely to increase significantly in the upcoming years. The last year's value of Cost of Revenue was reported at 4.06 Billion. The current Earning Before Interest and Taxes EBIT is estimated to increase to about 497.2 M, while Net Income to Non Controlling Interests is projected to decrease to roughly 73.4 K.

Mercadolibre Z Score Analysis

Mercadolibre's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Interest Expense65.88 M106.69 M228.7 M246.76 M
Gross Profit1.1 B1.71 B3.01 B3.24 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Mercadolibre Z Score

    
  11.19  
Most of Mercadolibre's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Mercadolibre is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Mercadolibre Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Mercadolibre is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Mercadolibre's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Mercadolibre's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Mercadolibre's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, Mercadolibre has a Z Score of 11.19. This is 246.44% higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The z score for all United States stocks is 28.33% lower than that of the firm.

Mercadolibre Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Mercadolibre's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Mercadolibre could also be used in its relative valuation, which is a method of valuing Mercadolibre by comparing valuation metrics of similar companies.
Mercadolibre is currently under evaluation in z score category among related companies.

Mercadolibre Current Valuation Drivers

We derive many important indicators used in calculating different scores of Mercadolibre from analyzing Mercadolibre's financial statements. These drivers represent accounts that assess Mercadolibre's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Mercadolibre's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee2.47 K(5.05 K)(17.73 K)(45.0)2.78 K2.85 K
Revenue Per Employee250.47 K198.88 K236.66 K254.9 K235.99 K212.9 K
Average Assets1.57 B1.87 B4.57 B5.54 B7.06 B7.62 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA121.46 M36.59 M31.95 M293 M664.75 M717.23 M
Earnings Before Interest Taxes and Depreciation Amortization USD121.46 M36.59 M31.95 M293 M664.75 M717.23 M
Earnings before Tax54.07 M(65.45 M)(107.25 M)81.31 M232.11 M250.43 M
Average Equity418.3 M271.51 M2.1 B1.77 B426.15 M584.06 M
Enterprise Value13.77 B12.86 B27.88 B83.23 B68.39 B73.79 B
Free Cash Flow194.16 M133.34 M314.29 M935.78 M392.11 M344.62 M
Invested Capital569.86 M1.24 B2.49 B1.99 B4.41 B4.75 B
Invested Capital Average629.99 M697.65 M2.61 B2.38 B3.81 B4.11 B
Market Capitalization13.89 B13.24 B28.43 B83.39 B66.69 B71.96 B
Tangible Asset Value1.56 B2.13 B4.68 B6.43 B9.91 B10.69 B
Working Capital318.89 M344.9 M2.04 B1.71 B2.34 B2.52 B

Mercadolibre Fundamentals

About Mercadolibre Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Mercadolibre's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Mercadolibre using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Mercadolibre based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
MercadoLibre, Inc. operates online commerce platforms in Latin America. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay. Mercadolibre operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 29957 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Mercadolibre without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Equity Forecasting Now

   

Equity Forecasting

Use basic forecasting models to generate price predictions and determine price momentum
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Mercadolibre using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Mercadolibre Piotroski F Score and Mercadolibre Valuation analysis. Note that the Mercadolibre information on this page should be used as a complementary analysis to other Mercadolibre's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for Mercadolibre Stock analysis

When running Mercadolibre price analysis, check to measure Mercadolibre's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mercadolibre is operating at the current time. Most of Mercadolibre's value examination focuses on studying past and present price action to predict the probability of Mercadolibre's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mercadolibre's price. Additionally, you may evaluate how the addition of Mercadolibre to your portfolios can decrease your overall portfolio volatility.
Global Correlations
Find global opportunities by holding instruments from different markets
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Is Mercadolibre's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mercadolibre. If investors know Mercadolibre will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mercadolibre listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mercadolibre is measured differently than its book value, which is the value of Mercadolibre that is recorded on the company's balance sheet. Investors also form their own opinion of Mercadolibre's value that differs from its market value or its book value, called intrinsic value, which is Mercadolibre's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mercadolibre's market value can be influenced by many factors that don't directly affect Mercadolibre's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mercadolibre's value and its price as these two are different measures arrived at by different means. Investors typically determine Mercadolibre value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercadolibre's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.