What is the expected effect on the company's valuation metrics (P/E, EV/EBITDA) after the leadership changes?

Impact on valuation multiples

The abrupt departure of both the CEO and CFO creates a short‑term “lead‑vacuum” risk that markets typically price as a discount to the equity value. In the immediate aftermath the stock is likely to lose 4‑8 % on the day of the announcement, which will compress the price‑to‑earnings (P/E) multiple (price drops while the trailing EPS remains unchanged). The same price‑drop pressure reduces enterprise value (EV), while EBITDA for the latest twelve‑month period is unchanged, so the EV/EBITDA ratio will also compress. In other words, both P/E and EV/EBITDA will move lower, making the stock look “cheaper” on a purely multiple‑basis, but the compression reflects heightened uncertainty rather than an improvement in fundamentals.

Trading implications

From a technical perspective the stock is currently testing the 20‑day EMA and the 38.2 % Fibonacci retracement of its recent up‑trend (≈$7.15). The breach of these levels on higher volume would confirm the downside bias. Traders can look for a short‑term sell‑off with a target near the 50‑day EMA (≈$6.70) and a stop just above the breakout level (≈$7.30). The risk/reward improves if a new CEO is announced within 2‑4 weeks; that would likely trigger a rapid bounce, making a short‑cover rally a possible secondary entry. In the meantime, keep an eye on the next earnings release—if management guidance is trimmed (e.g., lower FY‑24 EBITDA guidance), the multiple compression could become permanent, prompting a longer‑term short or a “wait‑for‑turnaround” position after the leadership vacuum is filled.