The S&P Healthcare Services Index has declined 3.9% over the last three months, but it has continued to outperform the S&P 500, which declined 6.9% over the same period, according to the October 2015 Healthcare Sector Update from Duff & Phelps. The best-performing sectors were other services (up 14.6%), home care/hospice (up 1.1%), and physician practice management (up 0.8%). The worst-performing sectors were assisted living (down 26.0%), diagnostic imaging (down 24.0%), and clinical laboratories (down 22.0%).
The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.53x and 12.5x, respectively. The sectors with the highest valuation multiples include: other services (2.78x LTM revenue, 28.5x LTM EBITDA), healthcare REITs (11.84x LTM revenue, 17.0x LTM EBITDA), and emergency services (3.19x LTM revenue, 23.4x LTM EBITDA).
Please let us know
if you have any comments about this article or enhancements you would like to see.