MELI vs TSM: Which Is the Better Buy?
Side-by-side comparison of MercadoLibre, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-08.
MercadoLibre, Inc. · Consumer Cyclical
$1,767.42
+41.4% upside to fair value
High Conviction
Grade A
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
MELI has more upside to fair value
(+41.4%).
TSM trades at a lower forward P/E
(26.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MELI |
TSM |
| Current Price |
$1,767.42 |
$365.90 |
| Fair Value Estimate |
$2,500.00 |
$352.00 |
| Upside to Fair Value |
+41.4%
|
-3.8%
|
| Market Cap |
$89.6B |
$1,897.7B |
| Forward P/E |
35.0x
|
26.0x
|
| EV / EBITDA |
18.5x
|
18.1x
|
| Price / Sales |
3.1x
|
13.3x
|
| Price / FCF |
8.9x
|
54.0x
|
| Revenue Growth YoY |
+39.1%
|
+33.0%
|
| Gross Margin |
44.5%
|
59.9%
|
| Operating Margin |
11.1%
|
50.8%
|
| Return on Equity |
33.7%
|
35.1%
|
| Dividend Yield |
0% |
1.05% |
| FCF Yield |
12.1%
|
1.85%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
MercadoLibre is the dominant e-commerce and fintech ecosystem across Latin America, operating the largest marketplace and digital payments platform in a region with 670M+ people where e-commerce penetration is still under 15%. Revenue grew 39% to $28.9B in FY2025 with $10.8B in free cash flow — a 12% FCF yield at current prices. The company is trading at its 5-year P/S minimum (3.1x) and P/FCF mi…
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
| Metric |
MELI |
TSM |
| Zone Low |
$1,875.00 |
$265.00 |
| Zone High |
$2,125.00 |
$310.00 |
| In Buy Zone? |
Yes
|
No
|