Fri, Jan 17, 2020

Healthcare Services Sector Update - December 2019

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The S&P Healthcare Services Index increased 2.8% over the last month, as compared to S&P 500, which increased by 2.9% over the same period.

Over the past month, the sectors experiencing the most growth were Providers – Other (up 7.7%), Consumer Directed Health / Wellness (up 7.5%) and Acute Care Hospitals (up 6.5%). The sectors experiencing most decline were Pharmacy Management (down 22.3%), Distribution (down 4.4%) and Specialty Managed Care (down 1.5%).

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.6x and 16.0x, respectively. Healthcare Services Sector Update – December 2019

The sectors with the highest valuation multiples include:

  • Consumer Directed Health / Wellness (4.55x LTM Revenue, 29.2x LTM EBITDA)

  • HCIT (4.29x LTM Revenue, 24.1x LTM EBITDA)

  • Assisted / Independent Living (1.95x LTM Revenue, 22.4x LTM EBITDA)

  • Home Health / Hospice (2.60x LTM Revenue, 20.9x LTM EBITDA)

Read the report for more detail on sector activity.


Source: S&P Global Market Intelligence as of December 31, 2019 and includes the most actively traded healthcare companies for respective covered sectors, excluding most microcap companies.



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