Wed, Oct 13, 2021
Healthcare Services Sector Update – Autumn 2021
The S&P Healthcare Services Index decreased by 6.7% over the last month, compared to the S&P 500 Index, which decreased 4.8% over the same period.
Over the past month:
- The sectors that experienced the most growth were Healthcare Staffing (up 3.3%), Care Management/TPA (up 3.3%) and consumer directed health/wellness (up 2.1%).
- The sectors that experienced the largest decline were Providers – Other (down 21.0%), Telemedicine (down 12.9%) and Home Health/Hospice (down 10.5%).
- The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.43x and 14.9x, respectively.
The sectors with the highest valuation multiples include:
- Contract Research Organizations (4.81x LTM revenue, 26.4x LTM EBITDA)
- HCIT (3.98x LTM revenue, 23.8x LTM EBITDA)
- Assisted/Independent Living (2.01x LTM revenue, 23.5x LTM EBITDA)
- Behavioral Health (0.46x LTM revenue, 22.3x LTM EBITDA)
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