AC power, which includes audio power, is best measured as an average power, commonly called "watts RMS". This is the accurate method. It is based on this formula:
In the case of a sinusoidal tone (not music) into a purely resistive impedance (not a speaker), use this formula:
An ideal (100% efficient) amplifier with a 12-volt peak-to-peak supply can drive a signal with a peak amplitude of 6 V. In an 8 ohm (see impedance) loudspeaker this would deliver:
Ppeak = (6 V)2 / 8 Ω = 4.5 watts peak instantaneous.
If this signal is sinusoidal, its RMS value is 6 V × 0.707 = 4.242 V(RMS). This voltage into a speaker load of 8 Ω gives a power of:
Pavg = (4.242 V)2 / 8 Ω = 2.25 watts average ("RMS")
Thus the output of a typical car audio amplifier is limited by the peak voltage of the battery. (This is why high-end car audio equipment uses a DC-to-DC converter to generate a higher supply voltage at the expense of drawing more current from the battery).
The true power output of an amplifier can be estimated by examining the input current. Linear amplifiers tend to be about 60% efficient at best. An amplifier labeled "500 W PMPO" but fitted with a 5-amp fuse can therefore deliver an average power of 5 A × 14.4 V × 60%, or about 43 watts.
It is not uncommon to see two apparently incompatible claims in a list of technical specifications of sound equipment, for instance, a "4500 watt PMPO" delivered from a "fitted plug with 3 A fuse"