Amazon.com Inc (AMZN) is slightly undervalued and MercadoLibre Inc (MELI) is overvalued.
Against our estimates of intrinsic value, AMZN trades at the wider discount: a margin of safety of +7%, against -72% for MELI.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.9% (average of 3 methods) values the shares at $273.73; the price of $254.98 is 7% below that value, and 68% of that value comes from beyond year five.
Leak Score 46/100 on 10 of 12 signals
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $1060.60; the price of $1826.58 is 72% above that value, and 74% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | AMZN | MELI |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $254.98 | $1826.58 |
| Intrinsic value | $273.73 | $1060.60 |
| Margin of safety | +7% | -72% |
| Leak Score | 46/100 (10/12) | 59/100 (3/12) |
| Market cap | $2.75T | $92.6B |
| Revenue growth, 5 years | 13.2% | 48.7% |
| Operating margin | 12.7% | 8.3% |
| Net margin | 17.4% | 5.3% |
| Return on equity | 30.6% | 27.5% |
| Debt to equity | 0.44 | 2.34 |
| P/E | 20.5x | 49.7x |
| Forward P/E | 24.0x | 33.4x |
| P/B | 5.0x | 11.8x |