Is MercadoLibre, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for MercadoLibre, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 61, a Price to Book Value of 25.15, and an EV to EBITDA ratio of 35.73. In comparison, Amazon.com, Inc. has a more reasonable P/E of 37.92 and an EV to EBITDA of 19.22, while Coupang, Inc. is classified as very expensive with a P/E of 205.16.
Despite the overvaluation, MercadoLibre has shown strong performance, with a year-to-date return of 45.63%, significantly outpacing the S&P 500's return of 12.22% in the same period. However, the company's high valuation ratios suggest that investors may be paying a premium that is not justified by its current earnings and growth prospects.