An old lady question

OK, what's the deal with the phrase, "Peace Out"?

Is it more like:

Far out

Over and out

Let it out

or what?

I'm guessing it's like, "Let's be peaceful and get out of here." But that's purely contextual speculation. And when I refer to context I refer to a dim memory of a boy band interviewee and, like, a muskrat on a cartoon show--as described by my kickboxing instructor.

I'm just so freaking old.