How Much for a Quid of Earnings? Understanding the P/E Ratio (Without the Finance Degree)

Welcome to finance’s answer to the age-old question: “Is it worth it?”
We’re talking about the price-to-earnings ratio – better known (and far more glamorously) as the P/E ratio. It's one of the most popular tools in the financial toolkit, helping investors, analysts, and ambitious corporate types work out whether a company’s share price reflects its profits – or if it's just market hype with a glossy finish.