MercadoLibreMEX:MELIN -3.44%71 Pretax Margin % is 6.55% as of Mar. 2026, which is 12% above its 10-year median of 5.84. GuruFocus rates MEX:MELIN with a GF Score™ of 71/100 and a GF Value™ of MXN61,912.31 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, MercadoLibre ranks better than 73.58% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. MercadoLibre's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN10,441 Mil. MercadoLibre's Revenue for the
three
months ended in Mar. 2026 was MXN159,499 Mil. Therefore, MercadoLibre's pretax margin for the quarter that ended in Mar. 2026 was 6.55%.
The historical rank and industry rank for MercadoLibre's Pretax Margin % or its related term are showing as below:
MEX:MELIN'
s Pretax Margin % Range Over the Past 10 Years
Min: -4.67 Med: 5.84 Max: 21.95
Current: 8.54
MEX:MELIN's Pretax Margin % is ranked better than 73.58% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.135
vs MEX:MELIN: 8.54
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
MercadoLibre Pretax Margin % Related Terms
MercadoLibre Pretax Margin % Historical Data
* Premium members only.
The historical data trend for MercadoLibre's Pretax Margin % 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.
MEX:MELIN vs DASH, SE, PDD: Pretax Margin % Comparison
For the Internet Retail subindustry, MercadoLibre's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where MercadoLibre's Pretax Margin % falls into.
* 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.
MercadoLibre (MEX:MELIN) has a Pretax Margin % of 6.55% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on MercadoLibre and its competitors. This is 12% above median its historical median of 5.84. According to the industry distribution chart, MercadoLibre ranks #298 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 26.4%.
Is MercadoLibre's Pretax Margin % too high?
MercadoLibre's current Pretax Margin % of 6.55% is 12% above median its 10-year median of 5.84. The Retail - Cyclical industry median Pretax Margin % is 3.14. MercadoLibre's value of 6.55% is 108.9% above this industry median. Based on the distribution chart, MercadoLibre ranks #298 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, MercadoLibre has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MercadoLibre's Pretax Margin % compare to DASH and SE?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #298 out of 1128 companies for Pretax Margin %. This puts MercadoLibre in the upper half of its industry. The industry median Pretax Margin % is 3.14. MercadoLibre's value of 6.55% is 108.9% above this benchmark. While the company's 10-year median is 5.84 vs. the industry median of 3.14, MercadoLibre has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Retail - Cyclical company?
The median Pretax Margin % among Retail - Cyclical companies is 3.14, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MercadoLibre's current Pretax Margin % of 6.55% is 108.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on MercadoLibre and its competitors. For the Retail - Cyclical industry, the median Pretax Margin % is 3.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MercadoLibre's current Pretax Margin % is 6.55%, which is 12% above median its own 10-year median of 5.84. 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 (MEX:MELIN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN61,912.31, compared to a current price of MXN28,406.70 — trading 54.1% below its estimated fair value. The current Pretax Margin % is 6.55%, which is 12% above median its 10-year median of 5.84 and 108.9% above the Retail - Cyclical industry median of 3.14. MercadoLibre's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For MercadoLibre (MEX:MELIN), the current Pretax Margin % is 6.55% as of Mar. 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 (MEX:MELIN) Overvalued in 2026?
Based on GuruFocus' analysis, MercadoLibre stock appears to be undervalued.
The current stock price of MXN28,406.70 is trading 54.1% below its estimated GF Value™ of MXN61,912.31.
GuruFocus considers MercadoLibre to be Significantly Undervalued.
Key valuation signals for MEX:MELIN:
Pretax Margin %: 6.55% (12% above median its 10-year median of 5.84)
GF Value™: MXN61,912.31 vs. price of MXN28,406.70 (54.1% below fair value)
Industry Position: 108.9% above the Retail - Cyclical median (#298 of 1128)
No single metric tells the full story. See the MEX:MELIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
71GF Score
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