Yep, that's what it shows. From my own power calculations I don't think Strava is so bad at power estimation. It just doesn't have complete information: headwind, tailwind, drafting, in a tuck, sitting up, ...
Once you recognize it's limitations, it's useful. For example, on one descent I did, I was in a tuck and definitely not pedaling (since, as per the rules, I had reached escape velocity :-), and Strava said I was producing (IIRC) sth like 300W. That means that being in a tuck was worth pedaling at 300W. (Checks typing to make sure tuck is spelled with a T. Yes. Ok, hit send)