M&A Advisory

Tue, Mar 29, 2022

Healthcare Services Sector Update – Early Spring 2022

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The S&P Healthcare Services Index decreased by 13.4% in January compared to the S&P 500 Index, which decreased 5.3%.

In January:

  • The sectors that experienced the highest growth were Consumer Directed Health/Wellness (up 8.5%), Assisted/Independent Living (up 2.6%) and Distribution (up 1.0%).
  • The sectors that experienced the largest decline were Providers –Other (down 28.0%), Behavioral Health (down 27.1%) and Clinical Laboratories (down 18.3%).
  • At month end, the average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall were 3.05x and 14.2x, respectively.
Healthcare Services Sector Update – January 2022 

The Sectors with the Highest Valuation Multiples

  • Contract Research Organizations (4.56x LTM revenue, 26.7x LTM EBITDA)
  • HCIT (4.02x LTM revenue, 21.0x LTM EBITDA)
  • Home Health/Hospice (1.79x LTM revenue, 19.7x LTM EBITDA)
  • Consumer Directed Health/Wellness (2.92x LTM revenue, 20.7x LTM EBITDA)

The S&P Healthcare Services Index increased by 3.0% in February, compared to the S&P 500 Index, which decreased 3.8%.

In February:

  • The sectors that experienced the highest growth were Assisted/Independent Living (up 26.7%), Providers –Other (up 18.9%) and Behavioral Health (up 17.9%).
  • The sectors that experienced the largest decline were Contract Research Organizations (down 6.6%), Dialysis Services (down 3.3%) and Healthcare REITs (down 2.9%).
  • At month end, the average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall were 2.91x and 14.3x, respectively.

Read the full report for more details on sector activity and valuation multiples in the healthcare services industry.

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