Is MercadoLibre, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for MercadoLibre, Inc. moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued at this time, with a 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 P/E of 37.92 and an EV to EBITDA of 19.22, while Coupang, Inc. is considered very expensive with a P/E of 205.16.
MercadoLibre's recent stock performance shows a 1-week return of 6.72%, significantly outperforming the S&P 500's 1.92% return in the same period. However, over the longer term, the company has underperformed the S&P 500, with a 10-year return of 64.70% compared to the index's 227.29%. Overall, the current valuation metrics suggest that MercadoLibre is fairly positioned in the market relative to its peers.