Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What did you mean when you said Valero (VLO) - Get Report was trading at "six times next year's earnings"?-- Sunny

Jim Cramer

: When I said Valero was trading at six times earnings, I was simply saying that the stock was trading at a price-to-earnings ratio of six when using next year's consensus analyst earnings estimate to make the calculation.

Why are the P/E ratios on Goldman Sachs (GS) - Get Report and Bear Stearns (BSC) so low?-- Erik

Jim Cramer

: The P/Es on these stocks are so low because most investors believe that the brokerage cycle is peaking, a notion I disagree with. The fixed-income trading environment remains very strong, M&A activity is on fire, and hedge fund/private equity/LBO activity is extremely healthy. I believe both stocks will go up from here, and I actually own Goldman Sachs for my charitable trust,

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At the time of publication, Cramer was long Goldman Sachs.

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