This is a simple currency converter that uses the Big Mac Index currency data as a base. Invented in 1986 by The Economist, the index monitors the prices of the Big Mac hamburger in various countries around the world and compares them according to the theory of purchasing power parity. This converter uses the official Big Mac Index data to calculate the 'correct' price ratio between a given set of countries, that is the price at which purchasing power parity exists.
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Implied Value - this is what the amount in the foreign currency should be, assuming that the countries have purchasing power parity. At this exchange rate a Big Mac costs the same in both countries.
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Market Value - this is the converted amount according to the market exchange rates.
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If the implied value is higher than the market value, that means the target currency is overvalued against the base currency. From a marketer's point of view that also means that a product theoretically should sell for more in the target country than in the base country.
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If the implied value is lower than the market value, that means the target currency is undervalued against the base currency. From a marketer's point of view that also means that a product theoretically should sell for less in the target country than in the base country.