Healthcare Services Sector Update – October 2018

The S&P Healthcare Services Index decreased 6.4% over the last month, slightly less than the broader S&P 500, which decreased 6.9% over the same period.

Over the past month, the best performing sectors were Behavioral Health (up 8.6%), Healthcare Consulting (up 2.8%) and Pharmacy Management (up 2.0%). The poorest performing sectors were Dialysis Services (down 16.7%), Rehabilitation (down 12.3%) and Government Managed Care (down 11.9%). The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.22x and 14.6x, respectively.

The sectors with the highest valuation multiples include:

  • Consumer Directed Health / Wellness (5.36x LTM Revenue, 29.1x LTM EBITDA)
  • HCIT (4.49x LTM Revenue, 27.0x LTM EBITDA)
  • Hospital Vendors (1.71x LTM Revenue, 24.3x LTM EBITDA)
  • Home Health / Hospice (1.70x LTM Revenue, 18.2x LTM EBITDA)

Read the report for more detail on sector activity.

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