Healthcare Services Sector Update – August 2019

The S&P Healthcare Services Index declined 6.2% over the last month, as compared to the S&P 500, which declined 1.3% over the same period.

Over the past month, the sectors experiencing the most growth were pharmacy management (up 10.2%), healthcare staffing (up 9.2%) and healthcare REITs (up 7.4%). The sectors experiencing most decline were consumer directed health / wellness (down 19.0%), behavioral health (14.6%) and skilled nursing (14.0%).

The current average LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.40x and 15.1x, respectively.

Healthcare Services Sector Update August 2019

The sectors with the highest valuation multiples include:

  • HCIT (4.58x LTM Revenue, 33.7x LTM EBITDA)

  • Consumer directed health / wellness (4.00x LTM Revenue, 24.4x LTM EBITDA)

  • Healthcare REITs (13.35x LTM Revenue, 20.3x LTM EBITDA)

  • Home health / hospice (2.18x LTM Revenue, 20.2x LTM EBITDA)

Read the report for more detail on sector activity.

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