MercadoLibre Valuation
| MELIN Stock | MXN 42,010 990.01 2.30% |
At this time, the firm appears to be overvalued. MercadoLibre secures a last-minute Real Value of 34472.04 per share. The latest price of the firm is 42010.0. Our model forecasts the value of MercadoLibre from analyzing the firm fundamentals such as Return On Equity of 0.31, profit margin of 0.03 %, and Current Valuation of 891.4 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
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.
The fair value of the MercadoLibre stock is 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. | Historical | Market 42010.0 | Real 34472.04 | Hype 43000.01 | Naive 45154.2 |
The intrinsic value of MercadoLibre's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence MercadoLibre's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: MercadoLibre Total Value Analysis
MercadoLibre is now expected to have takeover price of 891.4 B with market capitalization of 1.03 T, debt of 2.23 B, and cash on hands of 2.57 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the MercadoLibre fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
891.4 B | 1.03 T | 2.23 B | 2.57 B |
MercadoLibre Investor Information
About 87.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.87. MercadoLibre recorded earning per share (EPS) of 74.02. The entity last dividend was issued on the 28th of December 2017. Based on the measurements of operating efficiency obtained from MercadoLibre's historical financial statements, MercadoLibre is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.MercadoLibre Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. MercadoLibre has an asset utilization ratio of 69.99 percent. This suggests that the Company is making 0.7 for each dollar of assets. An increasing asset utilization means that MercadoLibre is more efficient with each dollar of assets it utilizes for everyday operations.MercadoLibre Ownership Allocation
MercadoLibre maintains a total of 49.71 Million outstanding shares. The majority of MercadoLibre outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in MercadoLibre to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in MercadoLibre. Please pay attention to any change in the institutional holdings of MercadoLibre as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.MercadoLibre Profitability Analysis
The company reported the revenue of 7.07 B. Net Income was 83.3 M with profit before overhead, payroll, taxes, and interest of 3.57 B.About MercadoLibre Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of MercadoLibre's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of MercadoLibre's related companies.MercadoLibre, Inc. operates online commerce platforms in Latin America. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina. MERCADOLIBRE INC operates under Specialty Retail classification in Mexico and is traded on Mexico Stock Exchange. It employs 72 people.
8 Steps to conduct MercadoLibre's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates MercadoLibre's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct MercadoLibre's valuation analysis, follow these 8 steps:- Gather financial information: Obtain MercadoLibre's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine MercadoLibre's revenue streams: Identify MercadoLibre's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research MercadoLibre's industry and market trends, including the size of the market, growth rate, and competition.
- Establish MercadoLibre's growth potential: Evaluate MercadoLibre's management, business model, and growth potential.
- Determine MercadoLibre's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate MercadoLibre's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in MercadoLibre Stock
When determining whether MercadoLibre offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MercadoLibre's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mercadolibre Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mercadolibre Stock:Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MercadoLibre. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in MercadoLibre Stock, please use our How to Invest in MercadoLibre guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.