Wed, Mar 24, 2021
Healthcare Services Sector Update – Early Spring 2021
The S&P Healthcare Services Index decreased by 4.5% over the last month, compared to the S&P 500 Index, which increased 1.0% over the same period.
Over the past month:
- The sectors that experienced the most growth were Assisted/Independent Living (up 15.2%), Contract Research Organizations (up 6.6%) and Healthcare REITS (up 5.5%).
- The sectors that experienced the largest decline were Telemedicine (down 18.0%), Dialysis Services (down 15.7%) and Home Medical Equipment/Durable Equipment (down 10.6%).
- The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.93x and 10.0x, respectively.
The sectors with the highest valuation multiples include:
- Consumer Directed Health/Wellness (4.50x LTM revenue, 27.2x LTM EBITDA)
- HCIT (4.97x LTM revenue, 25.2x LTM EBITDA)
- Home Health/Hospice (2.90x LTM revenue, 24.7x LTM EBITDA)
- Contract Research Organizations (3.72x LTM revenue, 22.4x LTM EBITDA)
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