Fri, Oct 11, 2019

Healthcare Services Sector Update - September 2019

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The S&P Healthcare Services Index declined 2.6% over the last month, as compared to S&P 500, which increased by 1.7% over the same period.

Over the past month, the best performing sectors were Hospital Vendors (up 11.8%), Behavioral Health (up 10.8%) and Providers – Other (up 7.2%). The sectors experiencing the most decline were Pharmacy Management (down 15.7%), Government Managed Care (down 7.8%) and Assisted / Independent Living (down 7.1%).

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.34x and 14.8x, respectively.

 What healthcare services sectors performed best in September? Read our latest report for more detail.

The sectors with the highest valuation multiples include:

  • HCIT (4.17x LTM Revenue, 33.0x LTM EBITDA)

  • Healthcare REITs (13.63x LTM Revenue, 20.7x LTM EBITDA)

  • Consumer Directed Health / Wellness (3.43x LTM Revenue, 20.1x LTM EBITDA)

  • Home Health / Hospice (2.18x LTM Revenue, 20.1x LTM EBITDA)

Read the report for more detail on sector activity.

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