It's one way to test for wear, and probably the simplest way to get an idea about where your internals are. But only a good test if you have a baseline on a fresh motor. Otherwise the numbers are just a guess.
What I understand, once you have the compression tester connected, you kick the bike thru the stroke until the needle stops rising. Should only take a few good full kicks. That should give you a good number to work with.
But again, if you didn't do a compression test with a fresh top end, it's only a wild assed guess.
Another good method is a leak down test, however it requires different equipment. And will give you a more accurate picture of how seals and whatnot are working.
There's really no good, accurate test other than just tearing it down and measuring everything.