MercadoLibre (FRA:MLB1) Moat Score: 8/10 (As of Jul. 05, 2026)


FRA:MLB1 MercadoLibre Inc FRA:MLB1
80 GF Score
Price €1,559.40
GF Value €3,154.07
Valuation Significantly Undervalued
! 3 Warning Signs
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What is MercadoLibre Moat Score?

MercadoLibre FRA:MLB1 +2.82% 80 Moat Score is 8 as of Jul. 05, 2026. GuruFocus rates FRA:MLB1 with a GF Score™ of 80/100 and a GF Value™ of €3,154.07 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,118 Retail - Cyclical companies, MercadoLibre ranks better than 99.64% on this metric.

MercadoLibre has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

MercadoLibre has Wide Moat: MercadoLibre Inc possesses a robust wide moat with strong network effects and significant customer switching costs in the e-commerce and fintech sectors. It has a dominant market position in Latin America, supported by a superior distribution network and consistent innovation.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes MercadoLibre might have Wide Moat - Clear and robust wide moat.

MercadoLibre  (FRA:MLB1) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

MercadoLibre Moat Score Related Terms

FRA:MLB1 vs DASH, PDD, SE: Moat Score Comparison

For the Internet Retail subindustry, MercadoLibre's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Cyclical Industry

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

* The bar in red indicates where MercadoLibre's Moat Score falls into.


FRA:MLB1
80GF Score
MercadoLibre Inc FRA:MLB1
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
MercadoLibre (FRA:MLB1) has a Moat Score of 8 as of Jul. 05, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, MercadoLibre ranks #4 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 0.40000000000001%.
Is MercadoLibre's Moat Score too high?
MercadoLibre's current Moat Score is 8. Based on the distribution chart, MercadoLibre ranks #4 out of 1118 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, MercadoLibre has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MercadoLibre's Moat Score compare to DASH and PDD?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #4 out of 1118 companies for Moat Score. This places MercadoLibre in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Cyclical company?
A good Moat Score depends on the Retail - Cyclical industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. MercadoLibre's current Moat Score is 8. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MercadoLibre stock overvalued right now?
Based on GuruFocus' analysis, MercadoLibre (FRA:MLB1) is currently considered Significantly Undervalued. The stock's GF Value™ is €3,154.07, compared to a current price of €1,559.40 — trading 50.6% below its estimated fair value. The current Moat Score is 8. MercadoLibre's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For MercadoLibre (FRA:MLB1), the current Moat Score is 8 as of Jul. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is MercadoLibre (FRA:MLB1) Overvalued in 2026?

Based on GuruFocus' analysis, MercadoLibre stock appears to be undervalued. The current stock price of €1,559.40 is trading 50.6% below its estimated GF Value™ of €3,154.07. GuruFocus considers MercadoLibre to be Significantly Undervalued.

Key valuation signals for FRA:MLB1:

  • Moat Score: 8
  • GF Value™: €3,154.07 vs. price of €1,559.40 (50.6% below fair value)
  • GF Score™: 80/100 with 3 warning signs

No single metric tells the full story. See the FRA:MLB1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

MercadoLibre Business Description

Address WTC Free Zone, Dr Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre is the largest e-commerce marketplace in Latin America, with more than 120 million unique active buyers and 1 million active sellers at the end of 2025. The company is roughly split between its e-commerce business, which includes its fulfillment and advertising services, and its fintech segment, which comprises its rapidly expanding payment and digital wallet platform (Mercado Pago) and its lending business (Mercado Credito). While the company operates in 18 countries, its primary markets are Brazil, Argentina, and Mexico, which account for more than 95% of its revenue.
80GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1,559.40
Price
€3,154.07
GF Value