Mercadolibre Stock Valuation

MELI
 Stock
  

USD 739.46  22.15  3.09%   

Do you want to know what the current value of Mercadolibre is today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Mercadolibre, is its stock price multiplied by the total number of shares outstanding, calculating Mercadolibre's enterprise value requires a different approach. It uses Mercadolibre's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Mercadolibre Enterprise Value is most likely to increase significantly in the upcoming years. The preceding year's Enterprise Value was reported at 68.39 Billion. The current Tangible Asset Value is estimated to increase to about 10.7 B, while Free Cash Flow is projected to decrease to roughly 344.6 M.
Mercadolibre secures a last-minute Real Value of $1042.02 per share. The latest price of the firm is $739.46. At this time, the firm appears to be undervalued. Our model forecasts the value of Mercadolibre from analyzing the firm fundamentals such as Current Valuation of 50.28 B, profit margin of 1.18 %, and Return On Equity of 5.23 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
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Mercadolibre Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Mercadolibre's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Mercadolibre Most Recent Valuation Data

Price Book
20.82
Enterprise Value
34.9 B
Enterprise Value Ebitda
44.5
Price Sales
4.69
Forward PE
87.72
Trailing PE
202.54
Enterprise Value Revenue
4.4
Undervalued
Today 739.46
Please note that Mercadolibre's price fluctuation is very steady at this time. Calculation of the real value of Mercadolibre is based on 3 months time horizon. Increasing Mercadolibre's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Mercadolibre is useful when determining the fair value of the Mercadolibre stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Mercadolibre. Since Mercadolibre is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Mercadolibre Stock. However, Mercadolibre's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
665.51
Downside
1,042
Real Value
1,048
Upside
Estimating the potential upside or downside of Mercadolibre helps investors to forecast how Mercadolibre stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Mercadolibre more accurately as focusing exclusively on Mercadolibre's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
1.863.785.12
Details
Hype
Prediction
LowEstimated ValueHigh
665.51767.75773.54
Details
Naive
Forecast
LowNext ValueHigh
709.20714.99720.79
Details
10 Analysts
Consensus
LowTarget PriceHigh
1,2501,9782,250
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Mercadolibre's intrinsic value based on its ongoing forecasts of Mercadolibre's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Mercadolibre's closest peers. When choosing an evaluation method for Mercadolibre, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Mercadolibre Investments

2.33 Billion

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Mercadolibre Valuation Drivers Correlation

Many accounts on the financial statements of Mercadolibre are highly interrelated and sometimes correlated. Consequently, when conducting Mercadolibre's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Mercadolibre
Click cells to compare fundamentals

Mercadolibre Valuation Trend

Knowing Mercadolibre's actual value is paramount for traders to make sound investment determinations. Mercadolibre's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Mercadolibre's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Mercadolibre's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Mercadolibre Market Cap

Mercadolibre is considered to be number one stock in market capitalization category among related companies. Market capitalization of Internet Retail industry is now estimated at about 750.14 Billion. Mercadolibre holds roughly 34.18 Billion in market capitalization claiming about 5% of equities under Internet Retail industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Mercadolibre Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Mercadolibre's current stock value. Our valuation model uses many indicators to compare Mercadolibre value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Mercadolibre competition to find correlations between indicators driving Mercadolibre's intrinsic value. More Info.
Mercadolibre is considered to be number one stock in last dividend paid category among related companies. It is considered to be number one stock in five year return category among related companies reporting about  2.27  of Five Year Return per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Mercadolibre by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Mercadolibre's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Mercadolibre's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Mercadolibre's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Mercadolibre and how it compares across the competition.

About Mercadolibre Valuation

The equity valuation mechanism determines the current worth of Mercadolibre on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Mercadolibre. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Mercadolibre based exclusively on its fundamental and basic technical indicators. By analyzing Mercadolibre's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Mercadolibre's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Mercadolibre. We calculate exposure to Mercadolibre's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Mercadolibre's related companies.
Last ReportedProjected for 2022
Gross ProfitB3.2 B
Profit Margin 0.0108  0.0111 
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.

Mercadolibre Quarterly Enterprise Value

60.31 Billion

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Mercadolibre Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Mercadolibre does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.85
Revenue Growth60.50%
Enterprise Value To Ebitda76.96
Enterprise Value To Revenue7.11

Mercadolibre Current Valuation Indicators

Valuation refers to the process of determining the present value of Mercadolibre and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Mercadolibre we look at many different elements of the entity such as Mercadolibre's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Mercadolibre's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Mercadolibre's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Mercadolibre, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Mercadolibre's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Mercadolibre's worth.
Additionally, see Stocks Correlation. 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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.
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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.
Quarterly Earnings Growth YOY
5.86
Market Capitalization
37.3 B
Quarterly Revenue Growth YOY
0.63
Return On Assets
0.0383
Return On Equity
0.23
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.