Tue, Dec 11, 2018

Healthcare Services Sector Update - November 2018

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The S&P Healthcare Services Index increased 5.2% over the last month, outperforming the S&P 500, which increased 1.8% over the same period.

Over the past month, the best performing sectors were Healthcare Staffing (up 21.6%), led by AMN Healthcare (NYSE:AMN), Healthcare Consulting (up 19.3%) and Skilled Nursing (up 14.4%). The poorest performing sectors were Behavioral Health (down 17.3%), Clinical Laboratories (down 4.6%) and Assisted / Independent Living (down 3.1%). The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.26x and 15.1x, respectively.

The sectors with the highest valuation multiples include:

  • HCIT (4.46x LTM Revenue, 34.4x LTM EBITDA)
  • Consumer Directed Health / Wellness (5.54x LTM Revenue, 27.9x LTM EBITDA)
  • Hospital Vendors (1.72x LTM Revenue, 24.6x LTM EBITDA)
  • Contract Research Orgs (3.32x LTM Revenue, 18.1x LTM EBITDA)

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