20
/ February
2017
Healthcare services multiples from Duff & Phelps
The S&P Healthcare Services Index increased 5.3% over the last month, outperforming the S&P 500, which increased 1.8% over the same period, according to the January 2017 Healthcare Services Sector Update from Duff & Phelps. The best performing sectors were assisted/independent living (up 17.5%), HCIT (up 10.8%), and emergency services (up 10.6%). The poorest performing sectors were skilled nursing (down 6.3%), diagnostic imaging (down 4.3%), and dialysis services (down 3.4%).
The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.34x and 13.2x, respectively. The sectors with the highest valuation multiples include: consumer-directed health and wellness (3.92x LTM revenue, 25.0x LTM EBITDA); HCIT (5.27x LTM revenue, 22.9x LTM EBITDA); other services (2.07x LTM revenue, 19.6x LTM EBITDA); and care management/TPA (1.08x LTM revenue, 19.5x LTM EBITDA).
Bonus: Get new solutions to heavily debated healthcare valuation topics in The BVR/AHLA Guide to Healthcare Finance and Valuation, edited by Mark Dietrich.
The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.34x and 13.2x, respectively. The sectors with the highest valuation multiples include: consumer-directed health and wellness (3.92x LTM revenue, 25.0x LTM EBITDA); HCIT (5.27x LTM revenue, 22.9x LTM EBITDA); other services (2.07x LTM revenue, 19.6x LTM EBITDA); and care management/TPA (1.08x LTM revenue, 19.5x LTM EBITDA).
Bonus: Get new solutions to heavily debated healthcare valuation topics in The BVR/AHLA Guide to Healthcare Finance and Valuation, edited by Mark Dietrich.