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STEPStepStone Group Inc.
$40.66$5.1B
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  4. Financial Ratios

StepStone Group Inc. (STEP) Financial Ratios

Latest Ratios: P/E Ratio -6.1x · EV/EBITDA N/A · ROE -39.2%. (2018–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

STEP Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Market Cap$5.1B$3.8B$3.7B$2.4B$1.5B$1.8B$1.2B———
Enterprise Value$5.3B$4.0B$3.8B$2.5B$1.6B$1.8B$994M———
P/E Ratio →-6.07——39.27—8.6117.12———
P/S Ratio2.551.923.163.34—1.301.49———
P/B Ratio3.684.322.091.270.910.971.78———
P/FCF79.6260.0062.1116.7610.328.357.93———
P/OCF76.4857.6457.2314.729.938.277.86———

P/E links to full P/E history page with 30-year chart

STEP EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
EV / Revenue—2.023.243.46—1.311.26———
EV / EBITDA———11.2433.933.732.98———
EV / EBIT———12.04—3.482.88———
EV / FCF—62.9263.6717.3710.948.436.71———

STEP Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Gross Margin51.0%51.0%-7.6%53.6%-253.9%42.2%48.8%46.2%45.4%44.5%
Operating Margin-51.3%-51.3%-21.3%24.1%0.7%33.1%41.7%34.0%25.9%30.9%
Net Profit Margin-26.2%-26.2%-15.3%8.2%27.2%14.2%8.0%——30.8%

Return on Capital

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
ROE-39.2%-39.2%-9.8%3.3%-1.1%15.6%14.0%——16.2%
ROA-9.2%-9.2%-4.3%1.6%-0.5%7.0%6.3%——17.5%
ROIC-35.3%-35.3%-8.7%6.4%-0.0%25.9%47.3%33.2%12.2%11.9%
ROCE-21.8%-21.8%-10.6%8.7%-0.0%34.3%59.8%42.9%22.3%28.1%

STEP Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Debt / Equity1.471.470.220.140.130.07—0.601.100.02
Debt / EBITDA———1.224.680.28—0.902.160.11
Net Debt / Equity—0.210.050.050.060.01-0.270.220.83-0.19
Net Debt / EBITDA———0.401.940.04-0.540.331.62-1.12
Debt / FCF—2.921.560.610.630.08-1.220.822.48-1.92
Interest Coverage-49.61-49.61-19.7421.94-8.90461.5446.9015.577.0094.98

STEP Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Current Ratio85.3385.331.010.980.880.741.792.111.962.28
Quick Ratio85.3385.331.010.980.880.741.792.111.962.28
Cash Ratio69.9369.930.150.110.080.050.290.320.220.61
Asset Turnover—0.290.260.19-0.020.330.600.660.520.57
Inventory Turnover——————————
Days Sales Outstanding——————————

STEP Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Dividend Yield3.6%—————————
Payout Ratio———117.9%—12.3%3.3%——108.5%

Total Shareholder Return Metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Earnings Yield———2.5%—11.6%5.8%———
FCF Yield1.3%1.7%1.6%6.0%9.7%12.0%12.6%———
Buyback Yield0.2%—————————
Total Shareholder Yield3.8%—————————
Shares Outstanding—$80M$71M$67M$62M$54M$33M$27M$29M$29M

Key Metrics

Growth RegimeAccelerating
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Equity dilution and leverage

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

Growth Premium Masks Earnings Volatility

Based on recent market data, StepStone trades at a forward P/E of 18.90, which appears to price in aggressive future growth expectations that may be disconnected from the firm's current negative GAAP earnings and the inherent volatility of its performance-related fee revenue streams.

The valuation premium relative to slower-growing advisory peers suggests investors are betting on the scalability of the STEP-X retail platform. However, the lack of a meaningful PEG ratio and the high P/FCF of 77.43 indicate that the market is currently valuing the firm on top-line potential rather than immediate cash-generative capacity.

Capital Efficiency Decaying Under Expansion

As reported in financial statements, StepStone's ROIC has deteriorated significantly, falling to -1.0% in 2026Q4 from positive levels in early 2025, which suggests that the firm's recent aggressive capital deployment and headcount expansion have yet to yield a commensurate return on invested capital.

The sharp decline in ROIC reflects the firm's struggle to convert its proprietary data advantage into consistent bottom-line profitability. Investors should monitor whether this trend is a temporary byproduct of strategic investment or a structural inability to generate returns above the cost of capital in a competitive private markets landscape.

Asset Turnover Reflects Scaling Challenges

According to quarterly filings, StepStone's asset turnover has remained consistently low, hovering near 0.10 in recent periods, which indicates that the firm's asset base is growing faster than its ability to generate revenue from those assets, highlighting potential inefficiencies in its current operational scale.

The low turnover ratio is characteristic of a firm heavily reliant on intangible assets and human capital rather than physical infrastructure. This suggests that future efficiency gains will depend entirely on the firm's ability to increase AUM without a linear expansion in high-cost advisory personnel.

Debt Escalation Pressures Financial Flexibility

Based on the firm's reported figures, the debt-to-equity ratio has climbed to 1.47 as of 2026Q4, signaling a rapid increase in leverage that warrants caution given the firm's recent history of negative operating margins and the potential for future interest coverage volatility.

The shift toward higher debt levels appears to be a strategic response to capital requirements, yet it leaves the firm with less margin for error in a downturn. The interest coverage ratio of 0.92 in the most recent quarter suggests that debt service is becoming increasingly sensitive to operational performance.

Misapplication of P/E Multiples

As noted in industry research, the P/E ratio is a fundamentally flawed metric for StepStone, as it fails to account for the massive non-cash stock-based compensation charges that artificially depress GAAP earnings and obscure the firm's underlying fee-related earnings potential.

Analysts should instead prioritize Fee-Related Earnings (FRE) to strip out the noise of performance-related carry and stock-based dilution. Relying on P/E in this context risks misinterpreting a high-growth, high-compensation business model as a distressed asset, leading to an inaccurate assessment of the firm's true economic value.

Download Financial Ratios Data

Includes 30+ ratios · 9 years · Updated daily

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STEP — Frequently Asked Questions

Quick answers to the most common questions about buying STEP stock.

What is StepStone Group Inc.'s P/E ratio?

StepStone Group Inc.'s current P/E ratio is -6.1x. The historical average is 21.7x.

What is StepStone Group Inc.'s ROE?

StepStone Group Inc.'s return on equity (ROE) is -39.2%. The historical average is -0.1%.

Is STEP stock overvalued?

Based on historical data, StepStone Group Inc. is trading at a P/E of -6.1x. Compare with industry peers and growth rates for a complete picture.

What is StepStone Group Inc.'s dividend yield?

StepStone Group Inc.'s current dividend yield is 3.61%.

What are StepStone Group Inc.'s profit margins?

StepStone Group Inc. has 51.0% gross margin and -51.3% operating margin.