Is MercadoLibre, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for MercadoLibre, Inc. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 61, a Price to Book Value of 25.15, and an EV to EBITDA of 35.73. In comparison to peers, Amazon.com, Inc. has a fair P/E of 37.92, while Coupang, Inc. is categorized as very expensive with a P/E of 205.16.
Despite recent challenges, including a 5.09% decline over the past week compared to a 1.70% gain in the S&P 500, MercadoLibre has shown strong performance over longer periods, with a 138.05% return over three years versus 81.19% for the S&P 500. This suggests that while the stock may be facing short-term volatility, its long-term growth potential remains robust.