Is StepStone Group, Inc. overvalued or undervalued?

As of 6 February 2025, the valuation grade for StepStone Group, Inc. has moved from very expensive to risky. The company is currently considered overvalued. Key ratios indicate significant financial challenges, with a P/E ratio of NA due to losses, a Price to Book Value of 37.69, and an EV to Sales ratio of 5.49. The negative ROE of -100.12% further underscores the company's struggles.
In comparison to its peers, StepStone Group's valuation appears unfavorable. For instance, Main Street Capital Corp. is rated attractive with a P/E of 9.97, while Victory Capital Holdings, Inc. also holds an attractive rating with a P/E of 15.17. The stark contrast in valuations suggests that StepStone Group is not only overvalued but also faces considerable headwinds in the market. Despite a strong long-term performance with a 5-year return of 2940.00%, recent trends show a decline, with a YTD return of -8.09% compared to the S&P 500's 2.44%.