Healthcare services multiples and trading performance

BVWireIssue #151-3
April 15, 2015

The S&P Healthcare Services Index has increased by 16% over the past three months, thus outperforming the S&P 500 (a 1.8% increase over the same period), according to the March 2015 Healthcare Sector Update from Duff & Phelps. The best performing sectors were emergency services (up 32.5%) and managed care—government (up 24.5%). The worst performing sectors were specialty managed care (down 13.9%) and physician practice management (down 0.5%).

Latest multiples: The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.75x and 12.1x, respectively. The sectors with the highest valuation multiples include: healthcare REITs (12.96x LTM revenue, 20.1x LTM EBITDA) and HCIT (3.49x LTM revenue, 21.39x LTM EBITDA).

The report also provides data on the pharmaceutical/medical devices/life sciences sectors.

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