No, it's not measured pressure divided by atmospheric pressure! It is the volume of the cylinder with the piston at bottom dead center compared with the volume of the cylinder with the piston at top dead center. Volume is usually measured in cubic centimeters. For example, with the piston down, cylinder volume including the combustion chamber may be 480 cc's. With the piston up, cylinder volume (essentiually just the combustion chamber) may be 80 cc's. Thus it figures out to be 6 to 1 compression ratio. We have squeezed, or compressed, the mixture to one-sixth of it's original volume, in theory anyway. Since the intake valve stays open as the piston rises at the start of the compression stroke, compression at cranking speeds does not begin until the piston is well up from BDC. Thus 'effective compression ratio' may only be 5 to 1 or 4.5 to 1, depending on intake valve closing. This lowered effective compression is one reason a 'hot' or performance cam is doggy at low speeds.