The S&P Healthcare Services Index declined 1.4% over the last month, as compared to S&P 500, which decreased by 0.3% over the same period.

Over the past month, the best performing sectors were Government Managed Care (up 17.3%), Commercial Managed Care (up 15.6%) and Consumer Directed Health / Wellness (up 12.7%). The sectors experiencing the most decline were Skilled Nursing (down 6.0%), Assisted / Independent Living (down 3.0%) and Contract Research Orgs (down 2.7%).

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.41x and 14.7x, respectively.

Healthcare Services Sector Update – October 2019

The sectors with the highest valuation multiples include:

  • HCIT (4.09x LTM Revenue, 30.8x LTM EBITDA)
  • Healthcare REITs (14.19x LTM Revenue, 21.2x LTM EBITDA)
  • Home Health / Hospice (2.10x LTM Revenue, 20.5x LTM EBITDA)
  • Consumer Directed Health / Wellness (3.50x LTM Revenue, 20.0x LTM EBITDA)

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