Has the U.S. Healthcare Sector valuation changed over the past few years?

Investors are pessimistic on the American Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically. The industry is trading at a PE ratio of 59.3x which is lower than its 3-year average PE of 65.5x. The industry is trading close to its 3-year average PS ratio of 2.1x.

Which industries have driven the changes within the U.S. Healthcare sector?

Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.3x. Analysts are expecting annual earnings growth of 18.7%, which is higher than its past year's earnings growth of 9.6% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sat, 19 Sep 2026	US$7.0t	US$3.4t	US$118.8b	25.2x	59.3x	2.1x
Mon, 17 Aug 2026	US$7.1t	US$3.4t	US$115.7b	25.7x	61.3x	2.1x
Wed, 15 Jul 2026	US$6.9t	US$3.3t	US$122.0b	25x	56.5x	2.1x
Fri, 12 Jun 2026	US$6.4t	US$3.3t	US$122.2b	23.1x	52.7x	1.9x
Sun, 10 May 2026	US$6.2t	US$3.3t	US$123.8b	22.9x	50.2x	1.9x
Tue, 07 Apr 2026	US$6.2t	US$3.3t	US$127.9b	22.5x	48.5x	1.9x
Thu, 05 Mar 2026	US$6.5t	US$3.3t	US$126.3b	25.6x	51.5x	2x
Sat, 31 Jan 2026	US$6.5t	US$3.2t	US$126.6b	27.8x	51.1x	2x
Mon, 29 Dec 2025	US$6.6t	US$3.2t	US$135.2b	26.5x	48.5x	2.1x
Wed, 26 Nov 2025	US$6.4t	US$3.2t	US$133.6b	26.7x	48.3x	2x
Fri, 24 Oct 2025	US$6.1t	US$3.1t	US$140.8b	25.5x	43.1x	2x
Sun, 21 Sep 2025	US$5.7t	US$3.1t	US$137.6b	23.9x	41.4x	1.8x
Tue, 19 Aug 2025	US$5.7t	US$3.1t	US$136.9b	23x	41.3x	1.8x
Thu, 17 Jul 2025	US$5.4t	US$3.0t	US$127.9b	23.3x	42.6x	1.8x
Sat, 14 Jun 2025	US$5.6t	US$3.0t	US$127.4b	23.5x	43.8x	1.8x
Mon, 12 May 2025	US$5.4t	US$3.0t	US$126.6b	24.2x	42.4x	1.8x
Wed, 09 Apr 2025	US$5.2t	US$2.6t	US$81.6b	24.1x	63.6x	2x
Fri, 07 Mar 2025	US$5.9t	US$2.6t	US$79.1b	27x	74.2x	2.2x
Sun, 02 Feb 2025	US$6.1t	US$2.9t	US$85.1b	27.8x	72x	2.1x
Tue, 31 Dec 2024	US$5.8t	US$2.9t	US$79.3b	27.5x	73.4x	2x
Thu, 28 Nov 2024	US$6.1t	US$2.9t	US$77.1b	28.5x	79.4x	2.1x
Sat, 26 Oct 2024	US$6.1t	US$2.9t	US$59.1b	29.1x	102.6x	2.1x
Mon, 23 Sep 2024	US$6.3t	US$2.8t	US$60.1b	30.1x	104.6x	2.2x
Wed, 21 Aug 2024	US$6.2t	US$2.8t	US$55.9b	31.9x	110.8x	2.2x
Fri, 19 Jul 2024	US$6.4t	US$2.8t	US$60.8b	31.3x	105.5x	2.3x
Sun, 16 Jun 2024	US$6.2t	US$2.8t	US$62.4b	29.9x	99.1x	2.2x
Tue, 14 May 2024	US$6.1t	US$2.8t	US$63.9b	30.6x	95.7x	2.2x
Thu, 11 Apr 2024	US$6.2t	US$2.8t	US$85.2b	32.1x	72.4x	2.2x
Sat, 09 Mar 2024	US$6.3t	US$2.8t	US$82.9b	32.5x	75.9x	2.3x
Mon, 05 Feb 2024	US$6.4t	US$2.8t	US$76.4b	31.9x	84.1x	2.3x
Wed, 03 Jan 2024	US$6.3t	US$2.8t	US$90.3b	32.5x	69.9x	2.2x
Fri, 01 Dec 2023	US$5.8t	US$2.8t	US$91.4b	28.4x	63.8x	2.1x
Sun, 29 Oct 2023	US$5.5t	US$2.8t	US$99.5b	24.1x	55.6x	2x
Tue, 26 Sep 2023	US$5.9t	US$2.8t	US$98.5b	27.9x	60.2x	2.1x


US Market	0.54%
Healthcare	1.74%
Life Sciences	8.75%
Healthtech	4.12%
Pharma	1.66%
Medical Equipment	1.44%
Biotech	1.22%
Healthcare Services	-1.77%

Company	Last Price	7D	1Y	Valuation
LLY Eli Lilly	US$1.15k	3.3% +US$33.2b	53.3%	PE38.5x
TMO Thermo Fisher Scientific	US$651.45	6.8% +US$15.4b	35.8%	PE34.6x
ABBV AbbVie	US$263.96	2.7% +US$12.1b	18.6%	PE74.4x
JNJ Johnson & Johnson	US$269.99	1.7% +US$10.6b	53.2%	PE30.9x
ISRG Intuitive Surgical	US$393.33	6.6% +US$8.5b	-10.3%	PE44.3x

Announcement • 6h

Merck Receives Positive Eu CHMP Opinion for Keytruda Plus Padcev as Perioperative Treatment for Resectable Muscle-Invasive Bladder Cancer

Merck announced the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending approval of KEYTRUDA (pembrolizumab), in combination with Padcev (enfortumab vedotin-ejfv), as neoadjuvant treatment and then continued after radical cystectomy as adjuvant treatment for adults with resectable muscle-invasive bladder cancer (MIBC). This recommendation, which also includes KEYTRUDA SC (known as KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph) in the U.S.), will now be reviewed by the European Commission (EC) for marketing authorization in the European Union (EU), Iceland, Liechtenstein and Norway. A final decision is expected by the fourth quarter of 2026. If approved, KEYTRUDA plus Padcev would become the first and only PD-1 inhibitor plus antibody-drug conjugate regimen for patients with MIBC regardless of cisplatin eligibility in the European Union. The recommendation is based on results from the Phase 3 KEYNOTE-B15 trial (also known as EV-304), which was conducted in collaboration with Pfizer and Astellas. In the study, KEYTRUDA plus Padcev, as perioperative treatment, demonstrated a statistically significant improvement in event-free survival (EFS), reducing the risk of EFS events (defined as disease progression, recurrence or death) by 47% (HR=0.53 [95% CI, 0.41-0.70]; p<0.0001), as well as improvements in overall survival and pathologic complete response rate. Bladder cancer is the eighth most common cancer worldwide, diagnosed in more than 635,000 patients each year globally. In Europe, it is estimated there were approximately 224,700 patients diagnosed with bladder cancer and more than 70,300 deaths from the disease in 2022. According to some clinical practice guidelines, about 25% of newly diagnosed bladder cancer cases are MIBC. The standard of care for patients with MIBC is neoadjuvant cisplatin-based chemotherapy followed by surgery, which is shown to prolong survival. However, nearly half of patients who undergo this standard treatment experience recurrence. Additionally, up to half of patients with MIBC are not eligible to receive cisplatin and face limited treatment options, typically undergoing surgery alone. KEYTRUDA is an anti-programmed death receptor-1 (PD-1) therapy that works by increasing the ability of the body’s immune system to help detect and fight tumor cells. KEYTRUDA is a humanized monoclonal antibody that blocks the interaction between PD-1 and its ligands, PD-L1 and PD-L2, thereby activating T lymphocytes which may affect both tumor cells and healthy cells. KEYTRUDA QLEX is a fixed-combination drug product of pembrolizumab and berahyaluronidase alfa. Pembrolizumab is a programmed death receptor-1 (PD-1) blocking antibody and berahyaluronidase alfa enhances dispersion and permeability to enable subcutaneous administration of pembrolizumab. KEYTRUDA QLEX is administered as a subcutaneous injection into the thigh or abdomen, avoiding the 5 cm area around the navel, over one minute every three weeks (2.4 mL) or over two minutes every six weeks (4.8 mL). KEYTRUDA and KEYTRUDA QLEX are each indicated, in combination with enfortumab vedotin-ejfv, for the treatment of adult patients with locally advanced or metastatic urothelial cancer. KEYTRUDA and KEYTRUDA QLEX, as single agents, are each indicated for the treatment of adult patients with locally advanced or metastatic urothelial carcinoma who are not eligible for any platinum-containing chemotherapy, or who have disease progression during or following platinum-containing chemotherapy or within 12 months of neoadjuvant or adjuvant treatment with platinum-containing chemotherapy. KEYTRUDA and KEYTRUDA QLEX are each indicated, in combination with enfortumab vedotin-ejfv, as neoadjuvant treatment and then continued after cystectomy as adjuvant treatment for the treatment of adult patients with muscle invasive bladder cancer (MIBC). KEYTRUDA and KEYTRUDA QLEX, as single agents, are each indicated for the treatment of adult patients with Bacillus Calmette-Guerin (BCG)-unresponsive, high-risk, non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (CIS) with or without papillary tumors who are ineligible for or have elected not to undergo cystectomy. In KEYNOTE-B15, the most common adverse reactions (=20%) occurring in cisplatin-eligible patients with MIBC treated with KEYTRUDA in combination with enfortumab vedotin-ejfv (n=403) were rash (63%), fatigue (48%), pruritus (46%), peripheral neuropathy (43%), diarrhea (36%), alopecia (32%), decreased appetite (29%), nausea and dysgeusia (28% each), constipation (27%), urinary tract infection (UTI) and dry eye (25% each), weight loss (22%), and hyperglycemia (20%). In the neoadjuvant phase of KEYNOTE-B15, serious adverse reactions occurred in 27% (n=403) of patients; the most frequent (=1.5%) were rash (3.2%), pneumonitis/interstitial lung disease (ILD) (2.2%), and diarrhea (1.7%). Fatal adverse reactions occurred in 1.7% of patients, including multiple organ dysfunction syndrome (0.5%) and COVID-19 pneumonia, cardiac arrest, pneumonia, septic shock, and urosepsis (0.2% each). Additional fatal adverse reactions were reported in 2 patients in the post-surgery phase before adjuvant treatment started, including pneumonia and sepsis (1 patient each). Permanent discontinuation of KEYTRUDA due to an adverse reaction occurred in 17% of patients. The most frequent (>1%) adverse reactions resulting in permanent discontinuation of KEYTRUDA were rash (2.2%), increased alanine aminotransferase (ALT) and pneumonitis/ILD (1.7% each), and hepatitis (1.2%). Of the 403 patients in the KEYTRUDA in combination with enfortumab vedotin-ejfv arm who received neoadjuvant treatment, 13 patients (3.2%) did not receive surgery due to adverse reactions.

Announcement • 6h

AbbVie Presents New Real-World Data Supporting Effectiveness of VRAYLAR (Cariprazine) At Psych Congress 2026

AbbVie presented new VRAYLAR (cariprazine) data at Psych Congress 2026 in New Orleans, including results from two prospective real-world observational studies in major depressive disorder (MDD) and bipolar I disorder (BP-I). In the real-world BP-I depression study, CReW BP-I, patients treated with VRAYLAR experienced significant improvements in depressive symptoms as well as outcomes that affect daily life, including functioning and quality of life, after 12 weeks of treatment in routine clinical practice; the most common adverse events were nausea and dizziness. In ProACt, a real-world study of adjunctive VRAYLAR in MDD, interim findings showed improvements not only in depressive symptoms, but also in outcomes that affect day-to-day life and matter most to patients, including functioning, motivation, energy and anhedonia. In addition to these real-world studies, AbbVie also presented an indirect comparative analysis in MDD, long-term pediatric safety data, and patient preference research evaluating treatment approaches following inadequate antidepressant response. MDD and BP-I can profoundly affect every aspect of a person's life and often require long-term, comprehensive care. Approximately one in five U.S. adults will experience MDD during their lifetime, and nearly 11 million adults are living with bipolar disorder, yet many continue to experience ongoing symptoms despite available treatments—highlighting persistent unmet treatment needs. Additional Presentations at Psych Congress 2026: An anchored matching-adjusted indirect comparison evaluating the efficacy and safety of cariprazine and lumateperone as adjunctive treatment for inadequate antidepressant response in adults with MDD. Final results from a long-term, open-label study evaluating the safety and tolerability of VRAYLAR among pediatric patients with BP-I disorder, schizophrenia or autism spectrum disorder, which showed VRAYLAR was generally well tolerated in the age groups studied. The use of cariprazine in the treatment of autism is not FDA-approved. Results from an MDD patient survey showing that most patients preferred augmenting their existing antidepressant treatment rather than switching therapies following an inadequate response, underscoring the importance of having adjunctive treatment options available. VRAYLAR (cariprazine) is a once-daily prescription medication approved as an add-on therapy for MDD in adults who are currently taking an antidepressant but still have unresolved depression symptoms, the acute treatment of manic or mixed episodes associated with BP-I in adults and pediatric patients 10 years of age and older, the treatment of depressive episodes associated with BP-I (bipolar depression) in adults, and for the treatment of schizophrenia in patients 13 years of age and older. VRAYLAR received FDA approval for certain pediatric populations and low doses (0.5 mg and 0.75 mg) in December of 2025, demonstrating continued innovation more than 10 years in. Since its approval in 2015, more than 150,000 clinicians have used VRAYLAR to treat more than 1.9 million patients across its indications. Tardive dyskinesia may not go away, even if you stop taking VRAYLAR. Tardive dyskinesia may also start after you stop taking VRAYLAR. Late-occurring side effects: VRAYLAR stays in your body for a long time. Some side effects may not happen right away and can start a few weeks after starting VRAYLAR, or if your dose increases. Your healthcare provider should monitor you for side effects for several weeks after starting or increasing dose of VRAYLAR. Problems with your metabolism, such as: High blood sugar and diabetes: Increases in blood sugar can happen in some people who take VRAYLAR. Extremely high blood sugar can lead to coma or death. Your healthcare provider should check your blood sugar before or soon after starting VRAYLAR and regularly during treatment. Tell your healthcare provider if you have symptoms such as feeling very thirsty, very hungry, or sick to your stomach, urinating more than usual, feeling weak, tired, confused, or your breath smells fruity. Increased fat levels (cholesterol and triglycerides) in your blood: Your healthcare provider should check fat levels in your blood before or soon after starting VRAYLAR and during treatment. Weight gain: Weight gain has been reported with VRAYLAR. You and your healthcare provider should check your weight before and regularly during treatment. Low white blood cell count: Low white blood cell counts have been reported with antipsychotic drugs, including VRAYLAR. This may increase your risk of infection. Very low white blood cell counts, which can be fatal, have been reported with other antipsychotics. Your healthcare provider may do blood tests during the first few months of treatment with VRAYLAR. Decreased blood pressure (orthostatic hypotension): You may feel lightheaded or faint when you rise too quickly from a sitting or lying position. Falls: VRAYLAR may make you sleepy or dizzy, may cause a decrease in blood pressure when changing position (orthostatic hypotension), and can slow thinking and motor skills, which may lead to falls that can cause fractures or other injuries. Seizures (convulsions). Sleepiness, drowsiness, feeling tired, difficulty thinking and doing normal activities: Do NOT drive, operate machinery, or do other dangerous activities until you know how VRAYLAR affects you. VRAYLAR may make you drowsy. VRAYLAR is available in 0.5 mg, 0.75 mg, 1.5 mg, 3 mg, 4.5 mg, and 6 mg capsules.

U.S. Healthcare Sector Analysis

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Latest News

Second quarter dividend of US$0.40 announced

Merck Receives Positive Eu CHMP Opinion for Keytruda Plus Padcev as Perioperative Treatment for Resectable Muscle-Invasive Bladder Cancer

AbbVie Presents New Real-World Data Supporting Effectiveness of VRAYLAR (Cariprazine) At Psych Congress 2026

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