NASDAQ
According to Zyberno, MercadoLibre, Inc. (MELI) shows a Value Trap signal — GOOD BUSINESS (67/100) with an apparent Margin of Safety of +74.4%, but a Brina Gap of -18.3% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, MercadoLibre, Inc. (MELI) trades at $1,930.75 against an estimated intrinsic value per share of $7,530.02 — a +74.4% Margin of Safety based on Owner Earnings of $12.27B TTM, projected at 71.9% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -18.3% weakens the case: based on the company's ROIC (8.5%) and reinvestment rate (23.5%), the business can fundamentally grow at 2.0% — but the current enterprise value implies the market expects 20.3%. This places MELI in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 57.5% annually.
Over the trailing twelve months, MELI generated $12.27B in Owner Earnings. Capital was deployed as follows: $1.34B invested in capital expenditures. Reinvestment rate: 23.5%. Owner Earnings have grown at 71.9% annually over the trailing five years using log-linear regression.