Mercadolibre Stock Alpha and Beta Analysis

MELI
 Stock
  

USD 661.45  3.55  0.53%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Mercadolibre. It also helps investors analyze the systematic and unsystematic risks associated with investing in Mercadolibre over a specified time horizon. Remember, high Mercadolibre's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see Mercadolibre Backtesting, Mercadolibre Valuation, Mercadolibre Correlation, Mercadolibre Hype Analysis, Mercadolibre Volatility, Mercadolibre History and analyze Mercadolibre Performance.
  
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Please note that although Mercadolibre alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Mercadolibre did 0.28  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Mercadolibre stock's relative risk over its benchmark. Mercadolibre has a beta of 2.89  . Let's try to break down what Mercadolibre's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Mercadolibre will likely underperform.
Mercadolibre Tangible Assets Book Value per Share are most likely to increase significantly in the upcoming years. The last year's value of Tangible Assets Book Value per Share was reported at 198.94. The current Enterprise Value is estimated to increase to about 73.8 B, while Book Value per Share is projected to decrease to 24.83.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Mercadolibre Quarterly Book Value per Share

31.522

Share

Mercadolibre Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Mercadolibre market risk premium is the additional return an investor will receive from holding Mercadolibre long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Mercadolibre. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Mercadolibre's performance over market.
α-0.28   β2.89
90 days against DJI

Mercadolibre expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Mercadolibre's Buy-and-hold return. Our buy-and-hold chart shows how Mercadolibre performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Mercadolibre Market Price Analysis

Market price analysis indicators help investors to evaluate how Mercadolibre stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Mercadolibre shares will generate the highest return on investment. By understating and applying Mercadolibre stock market price indicators, traders can identify Mercadolibre position entry and exit signals to maximize returns.

Mercadolibre Return and Market Media

The median price of Mercadolibre for the period between Thu, Mar 31, 2022 and Wed, Jun 29, 2022 is 834.88 with a coefficient of variation of 22.08. The daily time series for the period is distributed with a sample standard deviation of 200.81, arithmetic mean of 909.61, and mean deviation of 180.81. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
      Timeline 
1
Stock Split Watch Is MercadoLibre Next - The Motley Fool04/01/2022
2
2 Stocks Im Buying in April - The Motley Fool04/21/2022
3
Better E-Commerce Stock Alibaba or MercadoLibre - The Motley...04/27/2022
4
Why Block, MercadoLibre, and DoorDash Were Plunging Today - ...05/04/2022
5
EPS Reported05/05/2022
6
Financial Statements05/09/2022
7
3 No-Brainer Stocks Id Buy Right Now Without Hesitation - Th...05/20/2022
8
Unclassified Event05/25/2022
9
Worried About Inflation This Stock Can Move Higher in an Env...05/27/2022
10
Filing06/10/2022
11
Acquisition by Sanders Richard A of tradable shares of Merca...06/14/2022

About Mercadolibre Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Mercadolibre has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 (projected)
Long Term Debt to Equity1.461.36
Interest Coverage4.864.98

Mercadolibre Upcoming Company Events

As portrayed in its financial statements, the presentation of Mercadolibre's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Mercadolibre's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Mercadolibre's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Mercadolibre. Please utilize our Beneish M Score to check the likelihood of Mercadolibre's management manipulating its earnings.
Upcoming Quarterly Report7th of March 2022
Next Financial Report4th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End7th of March 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Mercadolibre

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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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 Backtesting, Mercadolibre Valuation, Mercadolibre Correlation, Mercadolibre Hype Analysis, Mercadolibre Volatility, Mercadolibre History and analyze Mercadolibre Performance. 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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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Mercadolibre technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Mercadolibre technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Mercadolibre trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...