Yes, you want to measure the lobe lift. The most important thing doing the way you are is to make sure the dial indicator is as close as you can get it to be inline with the travel and path of the pushrod.( IE Needs to duplicate the same plane the pushrod is traveling on/thru etc )Get it on the base circle as you mentioned, measure the lift and multiply by your rocker ratio.

The numbers you give would only amount to a .432 lift cam. Does this sound right? Is this a hydraulic cam ? If so, you might be experiencing some lifter plunger loss, which will drastically affect the numbers if so. Thats why its typically done with a solid lifter.If your hydraulic lifters are pumped up, then you may get close.