Healthcare Services Sector Update – October 2020 M&A Advisory

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Healthcare Services Sector Update – October 2020

The S&P Healthcare Services Index increased by 1.8% over the last month, compared to the S&P 500 Index, which decreased 3.3% over the same period.

Over the past month:

  • The sectors that experienced the most growth were Healthcare Staffing (up 12.5%), Assisted/Independent Living (up 9.6%) and Home Health/Hospice (up 5.5%).
  • The sectors that experienced the largest declines were Providers – Other (down 9.5%), HCIT (down 6.3%) and Dialysis Services (down 5.8%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.61x and 9.8x, respectively.

Healthcare Services Sector Update October 2020

The sectors with the highest valuation multiples include:

  • Hospital vendors (1.83x LTM revenue, 27.2x LTM EBITDA)
  • HCIT (3.90x LTM revenue, 26.3x LTM EBITDA)
  • Contract research organizations (3.26x LTM revenue, 19.4x LTM EBITDA)
  • Home health/hospice (3.09x LTM revenue, 18.9x LTM EBITDA)
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