MercadoLibre Inc (MELI) is overvalued and Sea Ltd ADR (SE) is overvalued.
Both trade above our estimate of their intrinsic value. SE is the closer of the two: -35%, 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 11.4% (average of 3 methods) values the shares at $77.00; the price of $103.67 is 35% above that value, and 70% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | MELI | SE |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $1826.58 | $103.67 |
| Intrinsic value | $1060.60 | $77.00 |
| Margin of safety | -72% | -35% |
| Leak Score | 59/100 (3/12) | 27/100 (3/12) |
| Market cap | $92.6B | $58.8B |
| Revenue growth, 5 years | 48.7% | 39.3% |
| Operating margin | 8.3% | 7.9% |
| Net margin | 5.3% | 5.9% |
| Return on equity | 27.5% | 14.5% |
| Debt to equity | 2.34 | 0.32 |
| P/E | 49.7x | 39.2x |
| Forward P/E | 33.4x | 21.8x |
| P/B | 11.8x | 4.9x |