Healthcare Services Sector Update – July 2021 M&A Advisory

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Healthcare Services Sector Update – July 2021

The S&P Healthcare Services Index decreased by 3.1% over the last month, compared to the S&P 500 Index, which increased 1.7% over the same period.

Healthcare Services Sector Update – July 2021

Over the past month: 

  • The sectors that experienced the most growth were Acute Care Hospitals (up 17.2%), Contract Research Organizations (up 5.8%) and Distribution (up 5.5%). 
  • The sectors that experienced the largest decline were Providers – Other (down 24.3%), Telemedicine (down 10.8%) and Home Medical Equipment (down 9.2%). 
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.46x and 15.5x, respectively.

The sectors with the highest valuation multiples include:

  • HCIT (4.59x LTM revenue, 25.9x LTM EBITDA) 
  • Contract Research Organizations (4.67x LTM revenue, 25.7x LTM EBITDA) 
  • Consumer Directed Health/Wellness (6.83x LTM revenue, 22.2x LTM EBITDA) 
  • Home Health/Hospice (2.70x LTM revenue, 22.0x LTM EBITDA)
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