The S&P Healthcare Services Index increased 1.3% over the past month, outperforming the S&P 500, which remained flat over the same period, according to the June 2016 Healthcare Sector Update from Duff & Phelps. The best performing sectors were Managed Care – Government (up 11.5%), Healthcare REITs (up 8.6%), and Other Services (up 6.5%) as certain of the companies in these sectors reported strong financial performance during the month.
The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.34x and 14.2x, respectively. The sectors with the highest valuation multiples include: HCIT (4.67x LTM Revenue, 27.0x LTM EBITDA), Pharmacy Management (1.14x LTM Revenue, 26.7x LTM EBITDA), Other Services (2.08x LTM Revenue, 22.8x LTM EBITDA), and Healthcare REITs (14.01x LTM Revenue, 22.0x LTM EBITDA).