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StepStone Group Inc. Class A Common Stock (STEP) — WACC Analysis

WACC Breakdown

StepStone Group Inc. Class A Common Stock (STEP) has a weighted average cost of capital (WACC) of 9.0%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.7%. The capital structure is 93.9% equity and 6.1% debt.

Interpretation

A WACC of 9.0% is moderate, reflecting the market's balanced risk assessment of StepStone Group Inc. Class A Common Stock.

Investors can compare STEP's WACC of 9.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

STEP WACC: 9.04% for StepStone Group Inc. Class A Common Stock

Current inputs imply a 9.19% cost of equity and a 6.66% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

StepStone Group Inc. Class A Common Stock Common Stock (STEP) WACC Results
Weighted Average Cost of Capital
9.04%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
6.66%
Pre-Tax Cost of Debt6.66%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 93.90%($4230.47M)
Debt: 6.10%($275.00M)
Equity Component
8.63%
93.90% × 9.19%
Debt Component
0.41%
6.10% × 6.66%

StepStone Group Inc. Class A Common Stock (STEP) WACC in context

StepStone Group Inc. Class A Common Stock (STEP) currently screens with an estimated WACC of 9.04%. That blends a 9.19% cost of equity, a 6.66% pre-tax cost of debt, and a 93.90% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What STEP WACC implies

A 9.04% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates STEP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 93.90% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.