MercadoLibreMEX:MELIN -3.44%71 ROE % is 23.80% as of Mar. 2026, which is 40% above its 10-year median of 16.97. GuruFocus rates MEX:MELIN with a GF Score™ of 71/100 and a GF Value™ of MXN62,504.41 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,097 Retail - Cyclical companies, MercadoLibre ranks better than 89.7% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MercadoLibre's annualized net income for the quarter that ended in Mar. 2026 was MXN30,079 Mil. MercadoLibre's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN126,399 Mil. Therefore, MercadoLibre's annualized ROE % for the quarter that ended in Mar. 2026 was 23.80%.
The historical rank and industry rank for MercadoLibre's ROE % or its related term are showing as below:
MEX:MELIN'
s ROE % Range Over the Past 10 Years
Min: -14.22 Med: 16.97 Max: 51.5
Current: 31
During the past 13 years, MercadoLibre's highest ROE % was 51.50%. The lowest was -14.22%. And the median was 16.97%.
MEX:MELIN's ROE % is ranked better than 89.7% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs MEX:MELIN: 31.00
MercadoLibre (MEX:MELIN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
MercadoLibre ROE % Related Terms
MercadoLibre ROE % Historical Data
* Premium members only.
The historical data trend for MercadoLibre's ROE % 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.
For the Internet Retail subindustry, MercadoLibre's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's ROE % distribution charts can be found below:
* The bar in red indicates where MercadoLibre's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
MercadoLibre (MEX:MELIN) has a ROE % of 23.80% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MercadoLibre and its competitors. This is 40% above median its historical median of 16.97. According to the industry distribution chart, MercadoLibre ranks #113 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 10.3%.
Is MercadoLibre's ROE % too high?
MercadoLibre's current ROE % of 23.80% is 40% above median its 10-year median of 16.97. The Retail - Cyclical industry median ROE % is 6.46. MercadoLibre's value of 23.80% is 268.4% above this industry median. Based on the distribution chart, MercadoLibre ranks #113 out of 1097 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 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MercadoLibre's ROE % compare to DASH and SE?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #113 out of 1097 companies for ROE %. This places MercadoLibre in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. MercadoLibre's value of 23.80% is 268.4% above this benchmark. While the company's 10-year median is 16.97 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MercadoLibre's current ROE % of 23.80% is 268.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MercadoLibre and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MercadoLibre's current ROE % is 23.80%, which is 40% above median its own 10-year median of 16.97. 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 MXN62,504.41, compared to a current price of MXN28,406.70 — trading 54.6% below its estimated fair value. The current ROE % is 23.80%, which is 40% above median its 10-year median of 16.97 and 268.4% above the Retail - Cyclical industry median of 6.46. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For MercadoLibre (MEX:MELIN), the current ROE % is 23.80% 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 54.6% below its estimated GF Value™ of MXN62,504.41.
GuruFocus considers MercadoLibre to be Significantly Undervalued.
Key valuation signals for MEX:MELIN:
ROE %: 23.80% (40% above median its 10-year median of 16.97)
GF Value™: MXN62,504.41 vs. price of MXN28,406.70 (54.6% below fair value)
Industry Position: 268.4% above the Retail - Cyclical median (#113 of 1097)
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
Get the complete analysis for MEX:MELIN
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:MELIN has been successfully added to your 
