Wed, Mar 13, 2019

Healthcare Services Sector Update - February 2019

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The S&P Healthcare Services index decreased by 1.5% over the last month, as compared to the S&P 500, which increased by 3.0% over the same period.

Over the past month, the best performing sectors were Consumer Directed Health / Wellness (up 12.2%), Skilled Nursing (up 12.1%) and Specialty Managed Care (up 10.6%). The sectors experiencing least growth were Pharmacy Management (down 32.5%), Healthcare Staffing (down 20.0%) and Assisted / Independent Living (down 16.4%).

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.25x and 14.7x respectively

The sectors with the highest valuation multiples include:

  • HCIT (4.29x LTM Revenue, 33.3x LTM EBITDA)
  • Consumer Directed Health / Wellness (4.88x LTM Revenue, 22.3x LTM EBITDA)
  • Care Management / TPA (1.89x LTM Revenue, 20.1x LTM EBITDA) 
  • Hospital Vendors (1.67x LTM Revenue, 18.9x LTM EBITDA)

Read the report for more detail on sector activity.

Healthcare Services Sector Update – February 2019

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