This value is then compared with the actual exchange rate ; if it is lower , then the first currency is under-valued -LRB- according to ORGANIZATION@1 theory -RRB- compared with the second , and conversely , if it is higher , then the first currency is over-valued .

This value is then compared with the actual exchange rate . If the rate is lower , then the first currency is under-valued -LRB- according to purchasing power parity -LRB- ORGANIZATION@1 -RRB- theory -RRB- compared with the second currency .
