Is MercadoLibre, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for MercadoLibre, Inc. moved from expensive to fair. The company is fairly valued based on its current metrics, which 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 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 35.59% year-to-date return, significantly outperforming the S&P 500's 16.30% return over the same period. This strong performance, combined with its fair valuation, suggests that the market has recognized its growth potential while maintaining a reasonable price relative to its earnings.