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Healthcare Services Sector Update – December 2020
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Brooks Dexter BrooksDexter
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Eric Coburn EricCoburn
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Phil Smith PhilSmith
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Jordan Lampos JordanLampos
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Priyanka Sharma PriyankaSharma
The S&P Healthcare Services Index increased by 7.3% over the last month, compared to the S&P 500 Index, which increased 2.6% over the same period.
Over the past month, the sectors that experienced the most growth were Behavioral Health (up 24.8%), Providers –Other (up 17.1%) and Home Health/Hospice (up 12.2%). The sector that experienced the largest decline was Consumer Directed Health/Wellness (down 2.0%), Distribution (down 1.1%) and Clinical Laboratories (down 1.0%).
The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.99x and 10.4x, respectively.
The sectors with the highest valuation multiples include:
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HCIT (4.47x LTM revenue, 30.5x LTM EBITDA)
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Contract Research Organizations (3.61x LTM revenue, 21.7x LTM EBITDA)
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Home Health/Hospice (3.22x LTM revenue, 20.0x LTM EBITDA)
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Consumer Directed Health/Wellness (2.92x LTM revenue, 18.5x LTM EBITDA)
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