Mercadolibre discount rates

.

FYE 2025 December

(1)

By Invested Capital:

.

D/E

= (8.64+6.53)÷6.75

= 2.2474074074

.

Clean Invested Capital Cost (CICC) Factor (Consolidated)

= Inflation Factor × (1 + D/E × (1 + 2 × Bond Ratio)) ÷ (1 + D/E)

= 1.1034949349×(1+2.2474074074×(1+2×0.1182089436))÷(1+2.2474074074)

= 1.2840441924

.

CICC Rate (Consolidated)

= 28.40441924 %

.

(2)

By Total Assets:

Total Liabilities/Total Equity

= 35.92÷6.75

= 5.3214814815

.

Clean Total Assets Cost (CTAC) Factor (Consolidated)

= Inflation Factor × (1 + Total Liabilities/Total Equity × (1 + 2 × Bond Ratio)) ÷ (1 + Total Liabilities/Total Equity)

=

1.1034949349×(1+5.3214814815×(1+2×0.1182089436))÷(1+5.3214814815)

= 1.323111129

.

CTAC Rate (Consolidated)

= 32.3111129 %

.

(3)

NetROIC

= 100×1.92÷(8.64+6.53+6.75)

= 8.7591240876 %

.

(4)

ROA

= 100×1.92÷42.67

= 4.499648465 %

.

(5)

By Invested Capital:

.

NetROIC 8.7591240876 % < CICC 28.40441924 %

— Value Destructive

.

(6)

By Total Assets:

.

ROA 4.499648465 % < CTAC 32.3111129 %

— Assets Destructive

.

(7)

By Gnetroic :

.

Gintrinsic_value

= (1 + Gnet_income ratio)²/(1+Ginvested-capital ratio)

= (1+0.0450)^2÷(1+0.6656534954)

= 0.6556135493

< 1, Intrinsic Value Destructive

.

(8)

By Gtotal_equity vs Inflation Rate:

Gtotal_equity 55.09% > Inflation Rate 10.34949349 %

— Equity Constructive

.

(9)

By Gnet_income vs CICC :

Gnet_income 4.5% < 28.40441924 %

— DCF Convergent

.

(10)

Arithmetic Average Inflation Ratio (Consolidated)

= (15.2×0.0414+5.96×0.326+6.48×0.0445)÷(15.2+5.96+6.48)

= 0.1034949349

.

(11)

Arithmetic Average 10Y Bond Ratio (Consolidated)

= (15.2×0.13847+5.96×0.097+6.48×0.09019)÷(15.2+5.96+6.48)

= 0.1182089436

.

References:

Meli revenue by countries (See Brazil, Argentina and Mexico)

chat.deepseek.com/share…

.

Inflation rate (See Brazil, Argentina and Mexico)

.

10Y Bond Rate (see Brazil and Mexico)

tradingeconomics.com/bo…

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10Y Bond Rate (Argentina)