Multiples in the healthcare services sector

The S&P Healthcare Services Index has increased by 6.1% over the last three months, outperforming the S&P 500 (a 1.1% decrease over the same period), according to the July 2015 Healthcare Sector Update from Duff & Phelps, cited in BVWire.  The best performing sectors were emergency services (up 39.6%) and acute care hospitals (up 18.4%). The worst performing sectors were healthcare REITs (down 16.5%) and diagnostic imaging (down 15.6%).

The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.8x and 13.1x, respectively. The sectors with the highest valuation multiples include: HCIT (3.7x LTM revenue, 20.3x LTM EBITDA) and emergency services (3.6x LTM revenue, 8.5x LTM EBITDA).