Healthcare Services Sector Update – September 2018

The S&P Healthcare Services Index increased 0.2% over the last month, which was in line with the S&P 500, which increased 0.4% over the same period.
 
Over the past month, the best performing sectors were Pharmacy Management (up 7.3%), Specialty Managed Care (up 4.6%) and Contract Research Orgs (up 4.5%). The poorest performing sectors were Behavioral Health (down 9.5%), Healthcare Staffing (down 6.4%) and Consumer Directed Health / Wellness (down 4.4%). The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.40x and 15.3x, respectively.
 
The sectors with the highest valuation multiples include:

  • Consumer Directed Health / Wellness (5.65x LTM Revenue, 29.9x LTM EBITDA) 
  • HCIT (5.13x LTM Revenue, 29.7x LTM EBITDA) 
  • Hospital Vendors (1.79x LTM Revenue, 24.2x LTM EBITDA) 
  • Contract Research Orgs (3.60x LTM Revenue, 19.4x LTM EBITDA)

Read the report for more detail on sector activity.

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