Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 20 Sept 2026
MELI· Consumer Discretionary
MercadoLibre
MercadoLibre's strong growth and financial health are offset by valuation concerns and a less clear moat.
Buffett fit
Partial fit
Owner
31
Durability
100
Management
87
Price
38
Score updated 23 Oct 2026 · analysis from 20 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of MercadoLibre would mean controlling a rapidly growing e-commerce and fintech platform in a high-potential region.
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MercadoLibre's 10-year durability is promising, given its consistent profitability and strong growth metrics.
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Management has maintained a disciplined approach with a low share count CAGR of 0.45% and a yield of 0.23%.
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At a of 44.5 and an EV/ of 22.7, MercadoLibre's valuation is demanding.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1Revenue CAGR of 42.19% over 5 years indicates robust growth.
- 2EPS CAGR of 120.38% over 5 years shows strong profitability improvements.
- 3Net debt/EBITDA of -3.79 reflects a strong balance sheet with net cash position.
- 4Interest coverage ratio of 17.5 indicates strong ability to meet debt obligations.
Concerns
7- 1 of 44.5 suggests high growth expectations are priced in.
- 2 of 43.86% is below the sector's top-quintile cutoff of 53.9%.
- 3 of 9.59% is below the sector's top-quintile cutoff of 14.9%.
- 4Net margin of 6.04% is below the sector's top-quintile cutoff of 10.9%.
Price history
$1,825+23.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
MercadoLibre operates a comprehensive online commerce ecosystem in Latin America, including marketplaces, fintech solutions, and logistics services. Its Mercado Pago platform facilitates payments both on and off its marketplace, while Mercado Envios handles logistics. The company benefits from a broad revenue base with a 42.19% 5-year revenue CAGR, indicating strong growth. Despite its diverse operations, the unit economics show a net margin of 6.04%, which is below top-quintile sector standards.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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