Thu, Dec 16, 2021
Healthcare Services Sector Update – Winter 2021
The S&P Healthcare Services Index decreased by 8.7% over the last month, compared to the S&P 500 Index, which decreased 1.0% over the same period.
Over the past month:
- The only sector that experienced growth was Healthcare Staffing (up 17.2%).
- The sectors that experienced the largest decline were Telemedicine (down 28.7%), Home Medical Equipment (down 24.0%) and Behavioral Health (down 22.5%).
- The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.35x and 14.8x, respectively.
The sectors with the highest valuation multiples include:
- Contract Research Organizations (4.60x LTM revenue, 26.7x LTM EBITDA)
- Consumer Directed Health/Wellness (3.84x LTM revenue, 20.0x LTM EBITDA)
- HCIT (4.27x LTM revenue, 20.0x LTM EBITDA)
- Healthcare REITs (11.78x LTM revenue, 19.2x LTM EBITDA)
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