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Is this Large Market Cap Stock target price reasonable for Mercadolibre, Inc. (NASDAQ:MELI)?

The company in question is, Mercadolibre, Inc. (NASDAQ:MELI) currently with a stock price of 167.86 (-0.36% today). The market cap for Mercadolibre, Inc. is 7299.37, and is in the sector Services, and Catalog & Mail Order Houses industry. The target price for Mercadolibre, Inc. is 159.04. Currently Mercadolibre, Inc. is trading with a P/E of 56.91, and a forward P/E of 46.6. Average volume for Mercadolibre, Inc. is 432.18 and so far today it is 2590541.

Performance in the last year for Mercadolibre, Inc. has been 86.14%. For EPS growth, Mercadolibre, Inc. has seen a growth of 46.60%, and is looking to grow in the next year to 30.69%. More long term stats show that EPS growth has been 13.60% over the last five years and could be 24.27% for the next five years. Mercadolibre, Inc. has seen sales growth quarter over quarter at 29.40%, with EPS growth quarter over quarter at -18.50%. The 20-day simple moving average is -5.00%, with the 200-day simple moving average coming to 23.97%.

Since the IPO date for Mercadolibre, Inc. on the 08/10/2007, Mercadolibre, Inc. has seen performance year to date to be 47.82%. With Mercadolibre, Inc. trading at 167.86, the dividend yield is 0.36%, and the EPS is 2.96.

So could Mercadolibre, Inc., be undervalued? Well as said before P/E is 56.91. The PEG is 2.34, P/S is 10.33 and the P/B is at 20.39. The P/cash is 18.46, with P/free cash flow at 78.32.

Mercadolibre, Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.6. This is with long term debt/equity at 0.81, and total debt/equity at 0.82.

In terms of margins, Mercadolibre, Inc. has a gross margin of 64.80%, an operating margin of 20.00% and a profit margin of 18.50%.Payout ratio for Mercadolibre, Inc. is 17.10%. Return on assets come to 12.20% with return on investment coming to 14.80%.

Insider ownership for Mercadolibre, Inc., is at 0.10% and institutional ownership comes to 80.60%. Outstanding shares are at 43.33. While shares float is 31.63. The float short is currently 5.11%, and short ratio is 3.74.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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