MercadoLibre Inc (MELI) is overvalued and PDD Holdings Inc ADR (PDD) is undervalued.
Against our estimates of intrinsic value, PDD trades at the wider discount: a margin of safety of +71%, against -72% for MELI.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $277.47; the price of $80.35 is 71% below that value, and 78% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | MELI | PDD |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $1826.58 | $80.35 |
| Intrinsic value | $1060.60 | $277.47 |
| Margin of safety | -72% | +71% |
| Leak Score | 59/100 (3/12) | 100/100 (3/12) |
| Market cap | $92.6B | $114.4B |
| Revenue growth, 5 years | 48.7% | 47.5% |
| Operating margin | 8.3% | 22.2% |
| Net margin | 5.3% | 20.7% |
| Return on equity | 27.5% | 22.9% |
| Debt to equity | 2.34 | 0.01 |
| P/E | 49.7x | 8.9x |
| Forward P/E | 33.4x | 6.6x |
| P/B | 11.8x | 1.7x |