I always have measured from anywhere the paper is discoloured, punctured or not.
In the sample below that is what I have done. There is more discolouration than I normally encounter with the paper I use.
This 5 shot 100 yard target was a test target from the builder.
Comments on if this is correct appreciated.
Edit: Thinking about it, it's probably a dumb question; the bullets hit and discoloured the paper so yes, you measure all the discolouration.

In the sample below that is what I have done. There is more discolouration than I normally encounter with the paper I use.
This 5 shot 100 yard target was a test target from the builder.
Comments on if this is correct appreciated.
Edit: Thinking about it, it's probably a dumb question; the bullets hit and discoloured the paper so yes, you measure all the discolouration.

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