GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » MercadoLibre Inc (BUE:MELI) » Definitions » E10

MercadoLibre (BUE:MELI) E10 : ARS72.08 (As of Dec. 2024)


View and export this data going back to . Start your Free Trial

What is MercadoLibre E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

MercadoLibre's adjusted earnings per share data for the three months ended in Dec. 2024 was ARS25,472.200. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ARS72.08 for the trailing ten years ended in Dec. 2024.

During the past 12 months, MercadoLibre's average E10 Growth Rate was 103.40% per year. During the past 3 years, the average E10 Growth Rate was 85.00% per year. During the past 5 years, the average E10 Growth Rate was 44.00% per year. During the past 10 years, the average E10 Growth Rate was 11.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of MercadoLibre was 85.00% per year. The lowest was -14.20% per year. And the median was 9.95% per year.

As of today (2025-03-17), MercadoLibre's current stock price is ARS20900.00. MercadoLibre's E10 for the quarter that ended in Dec. 2024 was ARS72.08. MercadoLibre's Shiller PE Ratio of today is 289.96.

During the past 13 years, the highest Shiller PE Ratio of MercadoLibre was 1770.32. The lowest was 63.56. And the median was 354.21.


MercadoLibre E10 Historical Data

The historical data trend for MercadoLibre's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MercadoLibre E10 Chart

MercadoLibre Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.71 3.86 10.74 57.82 72.08

MercadoLibre Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.82 38.36 60.59 62.61 72.08

Competitive Comparison of MercadoLibre's E10

For the Internet Retail subindustry, MercadoLibre's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MercadoLibre's Shiller PE Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Shiller PE Ratio falls into.



MercadoLibre E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, MercadoLibre's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=25472.2/133.1571*133.1571
=25,472.200

Current CPI (Dec. 2024) = 133.1571.

MercadoLibre Quarterly Data

per share eps CPI Adj_EPS
201503 0.706 99.621 0.944
201506 7.996 100.684 10.575
201509 19.369 100.392 25.691
201512 22.780 99.792 30.396
201603 19.861 100.470 26.323
201606 10.065 101.688 13.180
201609 26.253 101.861 34.319
201612 36.778 101.863 48.077
201703 33.917 102.862 43.906
201706 3.957 103.349 5.098
201709 22.080 104.136 28.233
201712 -58.431 104.011 -74.805
201803 -11.686 105.290 -14.779
201806 -12.470 106.317 -15.618
201809 -16.928 106.507 -21.164
201812 -3.771 105.998 -4.737
201903 10.163 107.251 12.618
201906 27.701 108.070 34.132
201909 -331.082 108.329 -406.962
201912 -132.697 108.420 -162.973
202003 -54.621 108.902 -66.787
202006 151.981 108.767 186.061
202009 41.574 109.815 50.411
202012 -166.015 109.897 -201.153
202103 -122.509 111.754 -145.971
202106 259.560 114.631 301.508
202109 375.475 115.734 432.000
202112 -185.822 117.630 -210.351
202203 279.167 121.301 306.453
202206 584.804 125.017 622.883
202209 711.424 125.227 756.479
202212 1,089.725 125.222 1,158.781
202303 1,568.547 127.348 1,640.100
202306 2,476.800 128.729 2,562.004
202309 5,011.284 129.860 5,138.539
202312 2,346.500 129.419 2,414.268
202403 11,424.300 131.776 11,544.017
202406 18,769.680 132.554 18,855.108
202409 14,884.829 133.029 14,899.174
202412 25,472.200 133.157 25,472.200

Add all the adjusted EPS together and divide 10 will get our e10.


MercadoLibre  (BUE:MELI) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

MercadoLibre's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=20900.00/72.08
=289.96

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of MercadoLibre was 1770.32. The lowest was 63.56. And the median was 354.21.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


MercadoLibre E10 Related Terms

Thank you for viewing the detailed overview of MercadoLibre's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions as of the end of 2023. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.