There are two numbers it gives you: the move calories and the total calories. I've tried calibrating them against another activity watch, which I've worn for 1.5 years and which is pretty accurate (i.e., over a period where I neither gain and lose weight, and where I've counted food calories carefully, the total calories used my old activity watch gives me is approximately equal to the food calories.)
I find the Apple Watch tends to give slightly less credit for exercise, but much more credit for resting calories, with the result that it reads 250 - 500 cal/day higher, or in other words probably too high.
Contrary to what I've read elsewhere, the resting calorie number is uses for me is absolutely constant, and way too high for my height, weight and age.
I definitely think whatever numbers Apple has programmed into its calorie counter should be tweaked.