Fundamental analysis MELI (MercadoLibre Inc)

Updated on 06/07/2026

We analyzed MercadoLibre stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 10/10, meaning high quality, and a P/FCF valuation multiple of 6.9×.

Sector: Internet Retail. Listing: US. Current price: 1607.82 USD.

⭐ Current opportunity : MercadoLibre Inc is in its historical low decile of valuation (P/FCF ≤ 10th percentile over 10 years, AND ratio < 25×). This is a potentially interesting entry point for long-term investors.

Lubin scoring methodology

MercadoLibre Inc (MELI)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is MercadoLibre a quality stock?

MercadoLibre gets a quality score of 10/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is MercadoLibre's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is MercadoLibre's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of MercadoLibre stock is 6.9×. At Lubin Investment, valuation is judged separately from quality.

Where to see MercadoLibre's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/MELI?lng=en.

Articles about MercadoLibre

• Is MercadoLibre (MELI) stock undervalued in 2026? (2026-06-11)

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• Liquidity Services (LQDT) — score 9/10, P/FCF 19.8×
• Allegro.eu (ALE.WA) — score 9/10, P/FCF 24.5×
• D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) — score 8/10, P/FCF 0.1×
• DoorDash (DASH) — score 8/10, P/FCF 61.9×

Go further

👉 See the full interactive analysis of MELI

Other resources : Detailed methodology · All stocks in the Internet Retail sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.