Healthcare Services Sector Update - April 2020 M&A Advisory

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Healthcare Services Sector Update - April 2020

The S&P Healthcare Services Index increased 10.9% over the last month, in line with the S&P 500 Index, which increased 12.7% over the same period.

Over the past month, The sectors experiencing the most growth were providers - other (up 33.4%), behavioral health (up 30.4%) and clinical laboratories (up 25.8%). The sectors experiencing the largest declines were healthcare staffing (down 9.3%) and skilled nursing (down 4.2%).

The current average LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.69x and 9.5x, respectively.

Healthcare Services Sector Update - April 2020

The sectors with the highest valuation multiples include:

  • HCIT (4.66x LTM revenue, 21.5x LTM EBITDA)
  • Assisted/Independent living (1.56x LTM revenue, 20.5x LTM EBITDA)
  • Consumer directed health/wellness (2.82x LTM revenue, 19.1x LTM EBITDA)
  • Hospital vendors (1.71x LTM revenue, 19.0x LTM EBITDA)
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