Healthcare Services Sector Update – June 2020

The S&P Healthcare Services Index decreased by 2.4% over the last month, compared to the S&P 500 Index, which increased 1.5% over the same period.

Over the past month, the sectors that experienced the most growth were clinical laboratories (up 6.2%), HCIT (up 3.7%) and healthcare REITS (up 2.2%).

The sectors that experienced the largest declines were assisted / independent living (down 14.2%), rehabilitation (down 10.9%) and acute care hospitals (down 10.0%).

The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.74x and 10.9x, respectively.

Healthcare Services Sector Update – June 2020

The sectors with the highest valuation multiples include:

  • Home health / hospice (2.6x LTM revenue, 21.9x LTM EBITDA)
  • Hospital vendors (1.85x LTM revenue, 20.7x LTM EBITDA
  • HCIT (4.92x LTM revenue, 19.7x LTM EBITDA)
  • Consumer directed health / wellness (2.64x LTM revenue, 18.2x LTM EBITDA)


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