Healthcare Services Sector Update – May 2018

The S&P Healthcare Services Index increased 3.7% over the last month, outperforming the S&P 500, which increased 2.2% over the same period. Over the past month, the best performing sectors were Skilled Nursing (up 24.0%), Healthcare Consulting (up 11.4%) and Behavioral Health (up 10.7%). The poorest performing sectors were Healthcare Staffing (down 13.7%), Distribution (down 11.1%) and Care Management/TPA (down 1.7%). The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services Industry overall are 2.22x and 14.3x, respectively.

The sectors with the highest valuation multiples include:

  • Consumer Directed Health / Wellness (5.15x LTM Revenue, 27.4x LTM EBITDA)
  • HCIT (4.60x LTM Revenue, 23.8x LTM EBITDA)
  • Pharmacy Management (0.73x LTM Revenue, 18.8x LTM EBITDA)
  • Hospital Vendors (1.76x LTM Revenue, 18.5x LTM EBITDA)

Read the report for more detail on sector activity.

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