Healthcare Service Sector Update – August 2018

The S&P Healthcare Services Index increased 6.3% over the last month, outperforming the S&P 500, which increased 3.0% over the same period. Over the past month, the best performing sectors were Consumer Directed Health/Wellness (up 17.0%), Government Managed Care (up 15.8%) and HCIT (up 13.0%). The poorest performing sectors were Specialty Managed Care (down 9.1%), Hospital Vendors (down 6.5%) and Healthcare Staffing (down 4.9%). The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.42x and 15.4x, respectively.

The sectors with the highest valuation multiples include:

  • Consumer Directed Health/Wellness (5.97x LTM Revenue, 31.7x LTM EBITDA)

  • HCIT (5.22x LTM Revenue, 30.2x LTM EBITDA)

  • Hospital Vendors (1.79x LTM Revenue, 24.6x LTM EBITDA)

  • Contract Research Orgs (3.48x LTM Revenue, 18.7x LTM EBITDA)

 Read the report for more detail on sector activity.

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