How does a dividend issuance impact P/E, EV/EBITDA, and P/BV ratios?

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IBPrep · Accepted Answer

P/E falls, share price drops by dividend amount, earnings unchanged → ratio drops. EV/EBITDA unchanged, equity value falls by dividend, but cash falls equally so EV is preserved; EBITDA unchanged.

How does a dividend issuance impact P/E, EV/EBITDA, and P/BV ratios?

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