Healthcare Services Sector Update - June 2021

July 29, 2021

The S&P Healthcare Services Index increased by 1.6% over the last month, compared to the S&P 500 Index, which increased 2.3% over the same period.

Over the past month:

  • The sectors that experienced the most growth were Providers – Other (up 19.1%), Assisted/Independent Living (up 14.3%) and Healthcare Staffing (up 8.9%).
  • The sectors that experienced the largest decline were Hospital Vendors (down 5.5%), Acute Care Hospitals (down 3.8%) and Specialty Managed Care (down 3.5%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.72x and 14.9x, respectively.

Healthcare Services Sector Update – June 2021

The sectors with the highest valuation multiples include:

  • HCIT (4.76x LTM revenue, 27.4x LTM EBITDA)
  • Contract Research Organizations (4.35x LTM revenue, 24.4x LTM EBITDA)
  • Home Health/Hospice (2.92x LTM revenue, 24.2x LTM EBITDA)
  • Consumer Directed Health/Wellness (3.80x LTM revenue, 23.1x LTM EBITDA)

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