KungFuPanda

"the leading P/E, it tells me the leading P/E increases as the Dividend Payout Ratio (DPR) increases." - where are you getting this from?

there's two formulas you need here:
g = ROE x b
leading P/E = (1 - b) / (r - g)

if b decreases (same as increasing the dividend payout ratio), then g changes as well, there's an effect on the numerator and denominator of the leading P/E formula, so it's not a given and a decrease in b will increase leading P/E