Healthcare services sector trading performance and multiples

BVWireIssue #153-1
June 3, 2015

The S&P Healthcare Services Index has increased by 9.3% over the last three months, outperforming the S&P 500 (a 4.5% increase over the same period), according to the May 2015 Healthcare Sector Update from Duff & Phelps. The best performing sectors were emergency services (up 55.9%) and psychiatric hospitals (up 18.6%). The worst performing sectors were specialty managed care (down 12.7%) and healthcare REITs (down 10.8%)

Latest multiples: The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.74x and 12.9x, respectively. The sectors with the highest valuation multiples include: HCIT (3.54x LTM revenue, 22.3x LTM EBITDA), emergency services (2.80x LTM revenue, 27.9x LTM EBITDA), and consumer-directed health and wellness (3.18x LTM revenue, 20.0x LTM EBITDA).

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