Based on strength of schedule.
Power Ranking is a schedule-adjusted score.
Step 1: We calculate your team's average scoring margin:
MOV = (Points For − Points Against) ÷ Games
Step 2: We calculate strength of schedule:
SOS = average of your opponents' Power Rankings
Final:
Power = MOV + SOS
We repeat the SOS step a few times so the schedule strength "settles" fairly across all teams. (Big blowouts are capped so one crazy game doesn't dominate.)