MercadoLibreHAM:MLB1 -0.63%80 Return-on-Tangible-Equity is 24.62% as of Mar. 2026, which is 30% above its 10-year median of 19.01. GuruFocus rates HAM:MLB1 with a GF Score™ of 80/100 and a GF Value™ of €3,064.79. The stock has 3 warning signs investors should review. Among 1,056 Retail - Cyclical companies, MercadoLibre ranks better than 82.67% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MercadoLibre's annualized net income for the quarter that ended in Mar. 2026 was €1,443 Mil. MercadoLibre's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,861 Mil. Therefore, MercadoLibre's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.62%.
The historical rank and industry rank for MercadoLibre's Return-on-Tangible-Equity or its related term are showing as below:
HAM:MLB1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -16.65 Med: 19.01 Max: 54.49
Current: 32.24
During the past 13 years, MercadoLibre's highest Return-on-Tangible-Equity was 54.49%. The lowest was -16.65%. And the median was 19.01%.
HAM:MLB1's Return-on-Tangible-Equity is ranked better than 82.67% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.275
vs HAM:MLB1: 32.24
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
MercadoLibre Return-on-Tangible-Equity Related Terms
MercadoLibre Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MercadoLibre's Return-on-Tangible-Equity 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.
HAM:MLB1 vs DASH, PDD, SE: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, MercadoLibre's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MercadoLibre's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.62% mean?
MercadoLibre (HAM:MLB1) has a Return-on-Tangible-Equity of 24.62% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MercadoLibre and its competitors. This is 30% above median its historical median of 19.01. According to the industry distribution chart, MercadoLibre ranks #183 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 17.3%.
Is MercadoLibre's Return-on-Tangible-Equity too high?
MercadoLibre's current Return-on-Tangible-Equity of 24.62% is 30% above median its 10-year median of 19.01. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. MercadoLibre's value of 24.62% is 197.5% above this industry median. Based on the distribution chart, MercadoLibre ranks #183 out of 1056 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, reflecting its overall financial health beyond just this single metric.
How does MercadoLibre's Return-on-Tangible-Equity compare to DASH and PDD?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #183 out of 1056 companies for Return-on-Tangible-Equity. This places MercadoLibre in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. MercadoLibre's value of 24.62% is 197.5% above this benchmark. While the company's 10-year median is 19.01 vs. the industry median of 8.28, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,056 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MercadoLibre's current Return-on-Tangible-Equity of 24.62% is 197.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MercadoLibre and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MercadoLibre's current Return-on-Tangible-Equity is 24.62%, which is 30% above median its own 10-year median of 19.01. 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?
MercadoLibre (HAM:MLB1) has a current Return-on-Tangible-Equity of 24.62%. The stock's GF Value™ is €3,064.79, compared to a current price of €1,547.40 — trading 49.5% below its estimated fair value. The current Return-on-Tangible-Equity is 24.62%, which is 30% above median its 10-year median of 19.01 and 197.5% above the Retail - Cyclical industry median of 8.28. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For MercadoLibre (HAM:MLB1), the current Return-on-Tangible-Equity is 24.62% 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 (HAM:MLB1) Overvalued in 2026?
Based on GuruFocus' analysis, MercadoLibre stock appears to be undervalued.
The current stock price of €1,547.40 is trading 49.5% below its estimated GF Value™ of €3,064.79.
Key valuation signals for HAM:MLB1:
Return-on-Tangible-Equity: 24.62% (30% above median its 10-year median of 19.01)
GF Value™: €3,064.79 vs. price of €1,547.40 (49.5% below fair value)
Industry Position: 197.5% above the Retail - Cyclical median (#183 of 1056)
No single metric tells the full story. See the HAM:MLB1 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.
80GF Score
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