MercadoLibre is scored 94 for moat and 87 for management. The management score rests on a return on invested capital of 11.8% and a gross margin of 44.5% — figures that describe a business turning capital into profit efficiently. Debt sits at 1.69x equity.
Three independent anchors set the price worth paying. Growth is modelled at 15.0% a year, below the 49.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 30.0x. That produces an intrinsic value of $1,102.50, a 10-CAP price of $2,499.36 and a payback time price of $3,945.46, with the value zone set at the highest of the three, $3,945.46. Today's price of $1,685.12 sits inside that zone.
MercadoLibre currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $1,685.12 |
| Market cap | $85.4B |
| P/E ratio | 45.9x |
| Return on invested capital | 11.8% |
| Gross margin | 44.5% |
| Debt to equity | 1.69x |
| Free cash flow yield | 10.5% |
| Growth rate used | 15.0% |
| Growth rate measured | 49.0% |
| Exit multiple assumed | 30.0x |
| Company | Moat | Buy price |
| O'Reilly Automotive (ORLY) | 55 | $36.06 |
| PDD Holdings (PDD) | 85 | $178.95 |
| eBay (EBAY) | 47 | $56.69 |
| AutoZone (AZO) | 43 | $917.32 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of MercadoLibre rather than accepting ours.