The S&P Healthcare Services Index has increased by 7.5% over the past three months, thus outperforming the S&P 500 (a 0.4% increase over the same period), according to the April 2015 Healthcare Sector Update from Duff & Phelps. The best performing sectors were managed care—government (up 25.7%) and contract research organizations (up 24.2%). The worst performing sectors were specialty managed care (down 13.6%) and HCIT (down 5.6%).
Latest multiples: The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.76x and 12.9x, respectively. The sectors with the highest valuation multiples include: HCIT (3.23x LTM revenue, 20.0x LTM EBITDA), assisted living (2.43x LTM revenue, 21.7x LTM EBITDA), and consumer-directed health and wellness (3.10x LTM revenue, 20.8x LTM EBITDA).
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