MercadoLibre Valuation
| MELIN Stock | MXN 23,475 252.50 1.06% |
At this time, the firm appears to be overvalued. MercadoLibre secures a last-minute Real Value of 21257.46 per share. The latest price of the firm is 23475.0. Our model forecasts the value of MercadoLibre from analyzing the firm fundamentals such as Profit Margin of 0.03 %, current valuation of 891.4 B, and Return On Equity of 0.31 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
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.
Our valuation method for MercadoLibre is useful when determining the fair value of the MercadoLibre stock, which is usually 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 23475.0 | Real 21257.46 | Hype 23475.0 | Naive 23022.23 |
The real value of MercadoLibre Stock, also known as its intrinsic value, is the underlying worth of MercadoLibre Company, which is reflected in its stock price. It is based on MercadoLibre's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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 Valuation Ratios as Compared to Competition
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. You can analyze the relationship between different fundamental ratios across MercadoLibre competition to find correlations between indicators driving MercadoLibre's intrinsic value. More Info.MercadoLibre is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about 3.24 of Price To Sales per Price To Book. 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. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MercadoLibre's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates MercadoLibre's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in MercadoLibre and how it compares across the competition.
About MercadoLibre Valuation
The stock valuation mechanism determines the current worth of MercadoLibre on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of MercadoLibre's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to 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.
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 tightly coupled 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for MercadoLibre Stock analysis
When running MercadoLibre's 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 the 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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