Fri, Feb 4, 2022

Healthcare Services Sector Update – December 2021

The S&P Healthcare Services Index increased by 10.4% over the last month, compared to the S&P 500 Index, which increased 5.6% over the same period.

Over the past month:

  • The sectors that experienced the highest growth were Home Medical Equipment (up 20.2%), Providers –Other (up 19.2%) and Commercial Managed Care (up 13.6%).
  • The sectors that experienced the largest decline were Consumer Directed Health/Wellness (down 14.8%), Assisted/Independent Living (down 9.9%) and Telemedicine (down 9.8%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.44x and 15.9x, respectively.

Healthcare Services Sector Update – December 2021

The sectors with the highest valuation multiples include:

  • Contract Research Organizations (5.24x LTM revenue, 30.3x LTM EBITDA)
  • HCIT (4.58x LTM revenue, 21.2x LTM EBITDA)
  • Healthcare REITs (12.07x LTM revenue, 19.4x LTM EBITDA)
  • Consumer Directed Health/Wellness (2.97x LTM revenue, 19.2x LTM EBITDA)
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