Stock fact sheet · data as of
StepStone Group Inc. (STEP): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Speculative / Distressed
Is STEP undervalued?
STEP closed at 41.33 on 16 Oct 2026, more than 30% above the GLS average fair value of 22.11. Only 0 of the 2 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
Only 2 of the nine models produced a value (DCF, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files STEP under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for STEP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 18.91 | -54% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 25.31 | -39% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -19.17 | -146% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 63.88 | +55% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: STEP passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 1.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC -58.5%, ROE 126.1%, ROA -7.7% - with debt at -3.16 times equity and negative free cash flow.
The dividend yield is high at 4.16% (payout ratio -22%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Management And Advisory Fees, Net 71%, Carried Interest Allocation 19%, Legacy Carried Interest Allocation 10% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | -58.5% |
|---|---|---|---|
| GLS Moat | 1.4 / 10 | ROE | 126.1% |
| Debt / equity | -3.16 | ROA | -7.7% |
| Free-cash-flow yield | -8.2% | Payout ratio | -22% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 45: Weak
STEP scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 0/25, Health 9/20, Moat 2/15, Premium 19/20, Stability 18/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 63% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is 12,884 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.4M shares a day on a market cap of $5.3B, with a beta of 1.28 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -87% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 2 / 15 | moat 1.4/10 | |
| Premium | 19 / 20 | implied volatility 63% | |
| Stability | 18 / 20 | 1.4M shares/day, $5.3B cap, beta 1.28 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to StepStone Group Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| JANIX Janus Henderson Triton Fund Class D | 28.28 | 45.31 | +38% | 39No options | $5.3B |
| MGR Affiliated Managers Group, Inc. | 18.63 | 210.70 | +91% | 39No options | $5.5B |
| OBDC Blue Owl Capital Corporation | 10.35 | 27.81 | +63% | 88Prime | $5.1B |
| CGABL The Carlyle Group Inc. 4.625% Subordinated Notes due 2061 | 15.60 | 15.57 | -0% | 36No options | $5.6B |
| FELTX Fidelity Advisor Semiconductors Fund | 153.71 | 1,989.48 | +92% | 39No options | $5.1B |
| MAIN Main Street Capital Corporation | 54.27 | 94.16 | +42% | 45Weak | $5.1B |
| BXSL Blackstone Secured Lending Fund | 24.19 | 39.65 | +39% | 72Good | $5.6B |
| EADOX Eaton Vance Emerging Markets Debt Opportunities - Class A | 8.62 | 7.35 | -17% | 29No options | $5.7B |
| VNYTX Vanguard New York Long-Term Tax-Exempt Fund Investor Shares | 10.22 | 5.94 | -72% | 25No options | $5.8B |
| JSEAX JPMorgan International Equity A | 23.39 | 20.34 | -15% | 30No options | $4.9B |
| HASI HA Sustainable Infrastructure Capital, Inc. | 36.80 | 27.99 | -31% | 56Fair | $4.7B |
| TILHX Nuveen Large Cap Growth Fund I | 30.47 | 23.04 | -32% | 24No options | $6.0B |
⚖ Compare STEP with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about STEP
Is STEP undervalued right now?
No: at 41.33 the stock trades 87% above the GLS average fair value of 22.11 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of STEP and what does it mean?
STEP scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STEP?
22.11 per share as of 16 Oct 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does StepStone Group Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STEP have listed options, and how liquid are they?
Yes. The nightly snapshot found 112 listed contracts with 12,884 open interest across all expiries and implied volatility of 63% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.