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    StepStone Group (STEP) Following Continuation Fund Deal Looks Pricey On A P S Basis

    Simply Wall St·09/08/2026 17:20:53
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    StepStone Group (STEP) is back in focus after leading a single asset continuation fund for Core Health & Fitness. The move provides liquidity for existing investors and fresh capital for expansion.

    Recent price action hints at a rebuild in confidence around StepStone Group, with the share price delivering a 30-day return of 9.72% and a 90-day gain of 20.24%. This comes despite the share price being down 23.55% year to date and the 1-year total shareholder return falling 13.40%, while the 3-year total shareholder return of 74.72% shows the longer record remains significantly stronger than the short-term stretch.

    Scan beyond StepStone Group and size up other private markets specialists and capital allocators using the curated 17 high quality undiscovered gems aligned to this kind of continuation-fund activity.

    StepStone Group now pairs a fresh continuation fund win with a mixed return profile that looks very different over 30 days than it does over 1 year. Does that shift the risk reward balance toward new capital, or does it favor patience?

    Preferred Price-to-Sales of 2.1x for StepStone Group: Is it justified?

    Using a price-to-sales lens, StepStone Group currently trades at a P/S of 2.1x, which is above its own fair ratio estimate and below both peers and the broader US Capital Markets group.

    P/S compares the company’s market value to its revenue and is often used when earnings are volatile or negative. That fits this asset manager, which reported revenue of $2,008.2m and a net loss of $613.2m while remaining unprofitable across several of the checks provided.

    Against direct peers, the 2.1x P/S is well under the 4.8x peer average and also below the 3.8x sector benchmark, which points to a lower sales multiple being applied to StepStone Group than many competitors. The fair P/S ratio estimate of 0.9x is materially lower than the current level, so the gap highlights a valuation that could still be rich relative to that regression based yardstick rather than what that model points to as a possible equilibrium level.

    For investors comparing valuation tools, the SWS fair ratio framework offers another lens on how far the current P/S could move if sentiment or fundamentals shift, and how that compares with similar Capital Markets stocks. Explore the SWS fair ratio for StepStone Group.

    Result: Price-to-Sales of 2.1x (OVERVALUED)

    Still, two pressure points stand out for StepStone Group: ongoing net losses on more than US$2.0b of revenue, and heavy reliance on private market fundraising cycles.

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

    Next Steps

    That mix of momentum and concern around StepStone Group only matters if it helps you act with clarity. Take a closer look at the figures, pressure test your thesis, and see how the 2 important warning signs fit into your view.

    Looking for more StepStone Group style investment ideas?

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    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.