In this post pick 2 countries, find the price of a Big Mac in each country (if you want to pick another good/service, go ahead), express the price in the local currency, then with the help of exchange rate, determine if the price in that country is close to the exchange rate or not - is it overvalued or undervalued based on the value of the asset...
if there is a discrepancy, why do you think there is one
For example: $1 = 6 Croatian Kunas and if Big Mac in US is $1, then it should cost 6 Kunas (more/less) in Croatia. if it is 12 Kunas, then it is twice as expensive in Croatia than in the US. This is just an example.