MELINEUTRAL

P/E Ratio

46.3x

Updated 9h ago

Sector Performance

84th percentile

MELI

46.3x

Sector Median

24.7x

Sector Avg

36.0x

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Deep Analysis

The current P/E ratio of 46.3x means investors are paying $46.30 for every $1 of the company's past earnings, indicating a high expectation for future profit growth.

This is well above the sector median of 24.7x, placing MELI in the 84th percentile among peers—meaning it is more expensive than 84% of comparable companies. The metric is increasing, with no year-over-year data available but a quarter-over-quarter rise of +12.3% from 41.2x to 46.3x. The combination of a high absolute level and an upward trend implies elevated valuation risk, as the stock's price is stretching further ahead of earnings. This metric contradicts the overall NEUTRAL verdict, since a rising P/E near the top of the sector typically signals overvaluation and warrants a more cautious stance.

Frequently Asked Questions

What does the P/E Ratio tell investors about MELI?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are MELI's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: VICI (9.1x), OMF (9.0x), JACK (8.5x), GIS (8.4x), FIS (8.4x).

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

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MELI

46.3x

Sector Median

24.7x

Sector Avg

36.0x

How MELI's P/E Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.