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    StepStone Group (STEP) Valuation Check After Renewed Interest From Strong Growth And Assets Under Management

    Simply Wall St·01/08/2026 22:34:20
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    Recent commentary around StepStone Group (STEP) focuses on its strong compound growth in revenue and earnings, along with gains in assets under management. This has renewed investor interest and raised fresh questions about how to view the stock now.

    See our latest analysis for StepStone Group.

    StepStone Group's recent commentary on revenue and earnings growth has been backed by strong price momentum, with a 10.74% 7 day share price return and a 12.96% 90 day share price return, while the 3 year total shareholder return of 173.66% and 5 year total shareholder return of 112.10% point to the longer term impact of its expanding private markets platform.

    If this kind of compounding story interests you, it can be worth widening the lens and seeing which other names are showing similar traits via fast growing stocks with high insider ownership.

    With StepStone’s strong share price gains and revenue growth already on the table, the key question now is whether the current valuation still leaves room for upside or if the market is already pricing in much of its future growth.

    Price-to-Sales of 3.6x: Is it justified?

    On a P/S of 3.6x at a last close of US$71.06, StepStone Group trades at a discount to peers, yet screens as expensive versus its own fair ratio.

    The P/S multiple compares the company’s market value to its revenue, which can be useful when earnings are volatile or, as in StepStone’s case, currently loss making. For a diversified capital markets business with a global private markets platform, investors often look at P/S to gauge what the market is willing to pay for each dollar of revenue when profits are not a clean signal.

    Here, the data points pull in two different directions. On one hand, StepStone is flagged as good value on P/S versus both direct peers, at 3.6x versus 5.3x, and the broader US Capital Markets industry, at 3.6x versus 4.3x. This implies the market is assigning a lower revenue multiple than it does to comparable companies. On the other hand, that same 3.6x is described as expensive versus an estimated fair P/S of 0.8x. This suggests that if the market were to align with this regression based fair ratio, there could be a sizeable gap between current pricing and that level.

    Against both peer and industry averages, StepStone’s P/S discount is clear. Yet relative to the estimated fair P/S ratio, the stock screens as richly valued, and the two views leave investors with a wide valuation range to weigh.

    Explore the SWS fair ratio for StepStone Group

    Result: Price-to-Sales of 3.6x (OVERVALUED)

    However, the story can change quickly if revenue growth slows from its recent 5.17% rate or if losses around US$615.09m persist and pressure sentiment.

    Find out about the key risks to this StepStone Group narrative.

    Build Your Own StepStone Group Narrative

    If you look at this data and reach a different conclusion, or simply want to test your own view, you can build a custom narrative in just a few minutes using Do it your way.

    A great starting point for your StepStone Group research is our analysis highlighting 3 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    If STEP has your attention, do not stop here. The screener can quickly surface other opportunities that fit your style before the market moves on.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.