Trade Call: Buy Mellie for Long-Term Upside

14 days ago

"the valuation has declined as well. It went from 70 times earnings two years ago now trading at about 39 times earnings. This is a much better valuation for Melly but even 39 times may sound expensive but if you look at the growth that have been putting up from Melly and the expected growth which is 48% in earnings per share 2026 and 40% 2027 39 times is nearly not as expensive as it sounds but this is my valuation model on Millie I put in the current earnings per share for 2025 4010 I put in 48% % revenue growth 39% I think earnings per share growth which I believe is fair then I took in a deceleration to 30% 25 20% which I also believe is fair as the company is going to grow it's eventually going to decline in growth and I think that's fair current P is 39 I put it at 30 times earnings based on the current price I'm seeing 125% on the upside or 17.6% 6% kaggle or annual return over the next 5 years with a high quality company like Melly. In my opinion, this is not bad at all. I still believe Mellie is a buy."

The speaker presents a detailed valuation for Mercadu Libra (ticker Melly), noting that its valuation has improved from 70 times earnings to about 39 times. Using a model that targets a move to 30 times earnings, the speaker estimates a potential 125% upside over the next 5 years and ultimately recommends buying the stock despite competitive pressures in the region.

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