The S&P Healthcare Services Index declined 0.6% over the last month, as compared to S&P 500, which increased by 0.4% over the same period.

Over the past month, the sectors experiencing the most growth were Providers – Other (up 26.2%), Home Health / Hospice (up 13.6%) and Hospital Vendors (up 13.5%). The sectors experiencing most decline were Pharmacy Management (down 8.4%), Assisted / Independent Living (down 7.0%) and Healthcare REITS (down 5.9%).

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.5x and 15.4x, respectively.

 Healthcare Services Sector Update – November 2019

The sectors with the highest valuation multiples include:

  • HCIT (4.37x LTM Revenue, 23.9x LTM EBITDA)
  • Assisted / Independent Living (1.97x LTM Revenue, 22.6x LTM EBITDA)
  • Healthcare REITs (13.84x LTM Revenue, 20.7x LTM EBITDA)
  • Home Health / Hospice (2.34x LTM Revenue, 20.5x LTM EBITDA)

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