The pressure in a compression test can be calculated using the formula below:
Compression ratio X 14.7 psi
14.7 psi is the nominal atmospheric pressure at sea level and you multiply that times the number of times it's volume is compressed (compression ratio).
Example:
Compression ratio for the M52 engine is 10.2:1
Compression test pressure should nominally be 14.7 x 10.2 = 149.9 psi
For the M50 the compression ratio is 10.5:1 so:
14.7 x 10.5 = 154.4 psi
You'll get some variation readings due to engine tolerances, altitude, etc.
If you were in Denver at 5,000 ft altitude the atmospheric pressure is 12.23 psi so your compression reading would be:
12.23 x 10.5 = 128.4 psi
If you were really high in the mountains at 10,000 ft the pressure would be 10.1 psi so your compression reading would be:
10.1 x 10.5 = 106 psi
Now you know why your performance falls off at higher altitudes..............
(source: bimmerfest.com)