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DCF valuation

What is Mercadolibre Inc worth?

With the base-case assumptions below, a discounted cash flow model on Mercadolibre Inc's reported free cash flow gives $6,842.66 per share. The share price was $1,490.24 on November 10, 2026, 78% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$10.77B
Average free cash flow, last 5 years
$5.07B
Cash
$4.16B
balance sheet of September 30, 2026
Debt
$13.19B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
50,697,320
Revenue growth per year, last 5 years
48.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$4,087.72+174%
Base15.0%9.0%2.5%9.0%$6,842.66+359%
Bull20.0%11.5%3.0%8.0%$11,972.45+703%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$8,928.47$9,578.83$10,373.72$11,367.33$12,644.83
8.0%$7,361.59$7,783.34$8,281.79$8,879.92$9,610.97
9.0%$6,221.56$6,509.93$6,842.66$7,230.84$7,689.61
10.0%$5,357.12$5,562.19$5,794.60$6,060.21$6,366.69
11.0%$4,680.73$4,831.07$4,999.09$5,188.12$5,402.35

Where the presets come from

Base: years 1 to 5 grow at Mercadolibre Inc's revenue growth rate over the last 5 fiscal years (48.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Mercadolibre Inc company page