MercadoLibre, Current Valuation vs. Operating Margin

MELID Stock  USD 15.25  0.25  1.61%   
Based on the key profitability measurements obtained from MercadoLibre,'s financial statements, MercadoLibre, may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess MercadoLibre,'s ability to earn profits and add value for shareholders.
For MercadoLibre, profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MercadoLibre, to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MercadoLibre, utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MercadoLibre,'s most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MercadoLibre, over time as well as its relative position and ranking within its peers.
  
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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 if MercadoLibre, is a good investment 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.

MercadoLibre, Operating Margin vs. Current Valuation Fundamental Analysis

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.
MercadoLibre, is rated top company in current valuation category among its peers. It also is considered to be number one stock in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for MercadoLibre, is about  30,101,200,686 . 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.

MercadoLibre, Operating Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

MercadoLibre,

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
175.49 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

MercadoLibre,

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
5.83 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

MercadoLibre, Operating Margin Comparison

MercadoLibre, is currently under evaluation in operating margin category among its peers.

MercadoLibre, Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MercadoLibre,, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MercadoLibre, will eventually generate negative long term returns. The profitability progress is the general direction of MercadoLibre,'s change in net profit over the period of time. It can combine multiple indicators of MercadoLibre,, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
MercadoLibre, Inc. operates online commerce platforms in Latin America. The company was incorporated in 1999 and is headquartered in Buenos Aires, Argentina. MERCADOLIBRE INC is traded on Buenos-Aires Stock Exchange in Argentina.

MercadoLibre, Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MercadoLibre,. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MercadoLibre, position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MercadoLibre,'s important profitability drivers and their relationship over time.

Learn to 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 the 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.

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Sectors

List of equity sectors categorizing publicly traded companies based on their primary business activities
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Use Investing Themes to Complement your MercadoLibre, position

In addition to having MercadoLibre, in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Cigarettes
Cigarettes Theme
Tobacco makers and distributors across globe. The Cigarettes theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cigarettes Theme or any other thematic opportunities.
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Other Information on Investing in MercadoLibre, Stock

To fully project MercadoLibre,'s future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MercadoLibre, at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MercadoLibre,'s income statement, its balance sheet, and the statement of cash flows.
Potential MercadoLibre, investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MercadoLibre, investors may work on each financial statement separately, they are all related. The changes in MercadoLibre,'s assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MercadoLibre,'s income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.