EBay Inc (EBAY) is overvalued and MercadoLibre Inc (MELI) is overvalued.
Both trade above our estimate of their intrinsic value. MELI is the closer of the two: -72%, against -78% for EBAY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.8% (average of 3 methods) values the shares at $61.38; the price of $109.28 is 78% above that value, and 70% of that value comes from beyond year five.
Leak Score 41/100 on 9 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 | EBAY | MELI |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $109.28 | $1826.58 |
| Intrinsic value | $61.38 | $1060.60 |
| Margin of safety | -78% | -72% |
| Leak Score | 41/100 (9/12) | 59/100 (3/12) |
| Market cap | $48.6B | $92.6B |
| Revenue growth, 5 years | 4.6% | 48.7% |
| Operating margin | 21.4% | 8.3% |
| Net margin | 18.4% | 5.3% |
| Return on equity | 46.4% | 27.5% |
| Debt to equity | 1.53 | 2.34 |
| P/E | 22.6x | 49.7x |
| Forward P/E | 16.2x | 33.4x |
| P/B | 10.4x | 11.8x |
| Dividend yield | 1.1% | — |