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GuruFocus has detected 8 Warning Signs with MercadoLibre Inc $MELI.
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MercadoLibre Inc (NAS:MELI)
EV-to-EBITDA
42.64 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, MercadoLibre Inc's enterprise value is $11,766.1 Mil. MercadoLibre Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $276.0 Mil. Therefore, MercadoLibre Inc's EV/EBITDA ratio for today is 42.64.

MELI' s EV-to-EBITDA Range Over the Past 10 Years
Min: 11.7   Max: 176.1
Current: 42.64

11.7
176.1

During the past 13 years, the highest EV/EBITDA Ratio of MercadoLibre Inc was 176.10. The lowest was 11.70. And the median was 31.30.

MELI's EV-to-EBITDA is ranked higher than
60% of the 1089 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.23 vs. MELI: 42.64 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, MercadoLibre Inc's stock price is $275.37. MercadoLibre Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $3.50. Therefore, MercadoLibre Inc's P/E Ratio for today is 78.68.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

MercadoLibre Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11766.104/275.953
=42.64

MercadoLibre Inc's current Enterprise Value is $11,766.1 Mil.
MercadoLibre Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 41.775 (Jun. 2016 ) + 66.298 (Sep. 2016 ) + 82.743 (Dec. 2016 ) + 85.137 (Mar. 2017 ) = $276.0 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

MercadoLibre Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=275.37/3.5
=78.68

MercadoLibre Inc's share price for today is $275.37.
MercadoLibre Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.36 (Jun. 2016 ) + 0.88 (Sep. 2016 ) + 1.16 (Dec. 2016 ) + 1.1 (Mar. 2017 ) = $3.50.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

MercadoLibre Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 164.8716.8037.1734.1528.2521.8025.7036.8925.6428.01

MercadoLibre Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 36.8940.0232.3420.9225.6423.8128.5736.2528.010.00
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