AlphaMadera's AlphaVal page classifies MercadoLibre, Inc. as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag MELI as undervalued, fairly valued, or overvalued.

What is MercadoLibre, Inc.'s fair value?

Fair value for MELI comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value MELI?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. MELI was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from MELI's most recent reported fundamentals.

MELI - MercadoLibre, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $2,170.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Strong

Trading 98.4% above fair value

Current Price $1876.04

Bear Case $827.19 55.9% downside ($827.19 - $1,876.04) / $1,876.04 = -55.9% $39.39 × 21x P/E

Fair Value $945.36 49.6% downside ($945.36 - $1,876.04) / $1,876.04 = -49.6% $39.39 × 24x P/E

Bull Case $1,063.53 43.3% downside ($1,063.53 - $1,876.04) / $1,876.04 = -43.3% $39.39 × 27x P/E

Adjust Assumptions

P/E Multiple

24.0x

Adjusted EPS

39.39$

Key Value Driver

Normalized P/E multiple (24x base case)

Terminal Value % of EV

Implied Market Multiple 47.6x

Market is pricing in (growth)

Plain-Language Summary

Applying a 24x P/E to adjusted EPS of $39.39, the base-case value is $945.36 per share. DDM cross-check: $8.66.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (33 analysts) $2170.00

Analyst Range $1750.00 – $2450.00

Divergence from AlphaVal 56%

Warnings

ℹ Dividend-based valuation: $8.66 (below our primary estimate by 99%). Large gaps may signal the dividend doesn't reflect full earning power.

ℹ Wall Street's average price target is $2170.00 (from 33 analysts). Our estimate is 56% below the consensus -- consider that gap carefully.

Key Risks

Growth DCF inappropriate — terminal value assumptions dominate
EV/EBITDA misleading for regulated businesses where capex is mandated
Regulatory risk is a fat tail not visible in normal multiples