Healthcare Services Sector Update – May 2021 M&A Advisory

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Healthcare Services Sector Update – May 2021

The S&P Healthcare Services Index increased by 2.4% over the last month, compared to the S&P 500 Index, which increased 0.5% over the same period.

Over the past month:

  • The sectors that experienced the most growth were Providers – Other (up 18.3%), Healthcare Staffing (up 12.5%) and Government Managed Care (up 12.5%).
  • The sectors that experienced the largest decline were Telemedicine (down 13.4%), Home Medical Equipment (down 7.6%) and HCIT (down 3.6%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.81x and 15.0x, respectively.

Healthcare Services Sector Update | May 2021

The sectors with the highest valuation multiples include:

  • HCIT (4.98x LTM revenue, 26.8x LTM EBITDA)
  • Contract Research Organizations (4.17x LTM revenue, 24.8x LTM EBITDA)
  • Home Health/Hospice (2.86x LTM revenue, 23.9x LTM EBITDA)
  • Consumer Directed Health/Wellness (4.75x LTM revenue, 23.7x LTM EBITDA)
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