MercadoLibre, Inc. — Internet Retail. Scored on the same transparent 7-signal model behind the daily rankings.
★
MELI
MercadoLibre, Inc. · Internet Retail
FCF$11.8bA-
Rev+34.3%A
D/E1.70C+
P/E47.8xC
PEG1.11B+
79.5Score
$1,807.83$91.7B
1Y Target$2,209Analyst consensus · 24 analysts
5Y Target$3,234Compound horizon
10Y Target$4,797Long-dated conviction
FCF$11.8bTTMA-
FCF $11.8b — top-quartile, exceptional for any sector
Rev+34.3%TTM YoYA
Revenue +34.3% — hypergrowth, top decile
D/E1.70C+
D/E 1.70 — above the Consumer Cyclical debt median (≈75th pctile)
P/E47.8xC
P/E 47.8 — expensive vs Consumer Cyclical peers (≈90th pctile)
PEG1.11B+
PEG 1.11 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 79.5
Quality0.77
Growth1.00
Value0.65
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
29% off the 12-month high
vs DCF fair value58% belowest. fair value ~$4277
Quality signals · context only
Gross profitability9% · Cgross profit ÷ total assets (Novy-Marx)
ROIC14.0% · B+return on invested capital — not score-weighted
Why now
MercadoLibre is a compounding machine, leveraging its integrated ecosystem where the Mercado Libre Marketplace fuels its high-growth Mercado Pago financial technology platform. With revenue growth at 34.3% and a robust free cash flow of $11.8b, the company continues to expand its market dominance, making its 1.11 PEG ratio highly attractive. The thesis rests on the continued synergy and expansion of its commerce and fintech offerings across its key Latin American markets.
Moat
MELI's durable edge stems from the powerful network effects created by its interconnected ecosystem, where Mercado Libre Marketplace users are seamlessly integrated into Mercado Pago's financial services. This comprehensive suite, including Mercado Fondo, Mercado Credito, and Mercado Envios, creates significant switching costs and data advantages that are difficult for competitors to replicate. The company's impressive 26.4% ROE is a direct result of this integrated platform's ability to cross-sell and retain users efficiently, driving superior capital allocation and profitability.
Risk
Skeptics point to MELI's elevated valuation and significant leverage as potential headwinds, with a TTM P/E of 47.7 and a Debt-to-Equity ratio of 1.7. The company's high beta of 1.34 also indicates sensitivity to market volatility, which could exacerbate drawdowns. A sustained deceleration in revenue growth below its historical trend, or a material increase in non-performing loans within its Mercado Credito segment, would confirm the bear case and challenge the long-term bull thesis.
Horizon
1-3 yr $2,209 (24-analyst consensus) — fundamentals + valuation re-rating. 5 yr $3,234 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $4,797 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · MELI
$
%
%
Shares to buy
1
Position size
$1,808
3.6% of portfolio
Stop price
$1,356
25% below $1,808
$ at risk if stopped
$451.96
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
MercadoLibre, Inc. (MELI): score, valuation & FAQ
MercadoLibre, Inc. (MELI) is a Internet Retail company that scores 79.5 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A), FCF (A-) and PEG (B+). On valuation, MELI sits about 58% below our discounted-cash-flow fair value (a margin of safety).
Is MELI a good stock to buy?
Bull Rankings scores MELI 79.5 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A), FCF (A-) and PEG (B+). A score is a quantitative screen of MercadoLibre, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does MELI score 79.5 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). MELI earns its highest marks on Rev (A), FCF (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is MELI overvalued or undervalued?
Based on $1807.83, MELI sits about 58% below our discounted-cash-flow fair value (a margin of safety). It trades at a 47.8x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in MELI?
Skeptics point to MELI's elevated valuation and significant leverage as potential headwinds, with a TTM P/E of 47.7 and a Debt-to-Equity ratio of 1.7. The company's high beta of 1.34 also indicates sensitivity to market volatility, which could exacerbate drawdowns. A sustained deceleration in revenue growth below its historical trend, or a material increase in non-performing loans within its Mercado Credito segment, would confirm the bear case and challenge the long-term bull thesis.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.