Healthcare Services Sector Update - March 2022

April 21, 2022

The S&P Healthcare Services Index increased by 6.6% over the last month, compared to the S&P 500 Index, which increased 5.2% over the same period.

Over the past month:

  • The sectors that experienced the highest growth were Behavioral Health (up 28.8%), Consumer Directed Health/Wellness (up 22.4%) and Providers - Other (up 14.5%).
  • The sectors that experienced the largest decline were Home Medical Equipment (down 4.6%), Telemedicine (down 4.0%) and HCIT (down 2.5%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.22x and 15.0x, respectively.

Healthcare Services MA Update March 2022

The sectors with the highest valuation multiples include:

  • Assisted/Independent Living (2.32x LTM revenue, 32.9x LTM EBITDA)

  • Consumer Directed Health/Wellness (4.40x LTM revenue, 26.9x LTM EBITDA)

  • Contract Research Organizations (3.88x LTM revenue, 22.0x LTM EBITDA)

  • Rehabilitation (3.02x LTM revenue, 21.4x LTM EBITDA)

 

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