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CFB Model Explained: Power Ratings to Fair Value

How the CFB model converts power ratings into fair value: simulate the season, map results to win probabilities, then strip the vig from market prices.

By Redshirt Editorial · 2026-07-22
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Key takeaways
  • The model converts power ratings into title probabilities through repeated season simulation, then anchors those probabilities to de-vigged market prices.
  • Notre Dame tops the model's national-title fair value at 11.7%, narrowly ahead of Ohio State at 11.3% and Oregon at 10.9%.
  • Georgia carries a 6.3% model fair value while its best contract prints at 5c on Polymarket, the widest model-over-price gap on the board.
  • Fair value is a de-vigged consensus across Kalshi and Polymarket, not a single venue's raw quote.
  • Best price and fair value are separate numbers: the model sets the probability, venue shopping sets the entry cost.

The model starts with power ratings, simulates the season and playoff thousands of times to turn those ratings into title win probabilities, and then reconciles the output against de-vigged market prices to produce a single fair value per team. The result is the national-title board: Notre Dame at 11.7%, Ohio State at 11.3%, and Oregon at 10.9% lead the field.

That number, the fair value, is the anchor for everything else on the desk. It is what the model believes a contract is worth before venue and vig enter the picture.

Why start with power ratings?

Power ratings compress each roster, schedule, and returning-production signal into a single strength number. They are the raw material because they answer the only question a title model actually needs to solve: in any given matchup, how often does team A beat team B.

A rating on its own is not a probability. Ohio State sitting above most of the field does not directly say how often the program wins the title; it says how often it should win a neutral game against a given opponent. The simulation is what closes that gap.

How do power ratings become a probability?

The model runs the full season and the twelve-team bracket many times over. Each simulated game is decided by the rating gap plus a margin for variance, so upsets happen at roughly the rate they happen in reality. Count how often a team survives to lift the trophy, divide by the number of runs, and the raw title probability falls out.

That step is why a strong rating does not always translate into a strong title number. Path matters. Indiana's 8.1% and Miami's 7.1% reflect not just team strength but the conference and bracket gauntlet each has to clear. The simulation prices the road, not only the roster.

Why strip the vig from market prices?

Raw contract prices across every title team sum to well above 100% because each venue bakes in a margin. Comparing a single quote to the model without correcting for that margin overstates every probability. The model de-vigs by rescaling the full field so the implied probabilities total 100%, then blends venues into one consensus.

This is the difference between fair value and best price. Fair value is the de-vigged consensus number; best price is the cheapest contract on offer across Kalshi and Polymarket. Notre Dame's 12c best price on Polymarket and its 11.7% fair value describe two different things: the cost of entry and the model's probability.

Venue shopping is where that split pays off. For traders comparing venues, promo access such as Kalshi FADE or Polymarket TGSWC changes net cost, but it does not change the underlying fair value the model computes.

Where do model and market line up now?

Across the top of the board, fair value and best price track closely, which is expected in a liquid market weeks out from kickoff. Notre Dame, Ohio State, Oregon, and Texas all price within roughly a cent of the model's number.

The exception worth flagging is Georgia: a 6.3% fair value against a 5c best price on Polymarket. That is the widest spot where price trails the model on the current board. It is a signal to examine, not a verdict, because both the model and the market can be wrong and prices reprice on news.

National-title fair value, top eight
Notre Dame11.7%
Ohio State11.3%
Oregon10.9%
Texas9.8%
Indiana8.1%
Miami7.1%
Georgia6.3%
LSU5.4%

How to read the fair value board

The workflow is consistent across every market the desk tracks: power ratings feed the simulation, the simulation produces probabilities, de-vigging turns raw quotes into a comparable consensus, and the gap between fair value and best price highlights where to look. Georgia's 5c print against a 6.3% model number is exactly the kind of gap the process is built to surface.

None of this is a recommendation. The model is a probability estimate, prices reflect real liquidity and information, and the two converge and diverge as the season approaches. The board is a research tool for reading CFB futures as probabilities, not a call on any single contract.

Best price on Polymarket, leaders
Notre Dame12c
Ohio State12c
Oregon11c
Texas9c
Indiana8c
Georgia5c
TeamsNotre DameOhio StOregonTexasGeorgiaIndiana
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Frequently asked questions

How does a college football model turn power ratings into fair value?

The model uses power ratings to estimate matchup win probabilities, simulates the full season and bracket many times, and counts how often each team wins the title. That share becomes the raw probability, which is then reconciled against de-vigged market prices to set fair value.

What is fair value in CFB prediction markets?

Fair value is the model's estimate of a contract's true probability, expressed as a percentage. For example, the model's fair value on Notre Dame to win the national title is 11.7%.

Why remove the vig from Kalshi and Polymarket prices?

Raw market prices across all teams sum to more than 100% because of the built-in margin. Stripping that vig rescales the field so the probabilities add up correctly and can be compared to the model.

Does a gap between fair value and best price guarantee profit?

No. A gap such as Georgia's 6.3% fair value versus a 5c best price flags where price trails the model, but the model can be wrong and prices move. It is research, not financial advice.

Where does the model source its best prices?

Best price is the cheapest available contract across tracked venues, currently Polymarket and Kalshi for the national-title market. The board lists the venue offering that price for each team.

About the author
Redshirt Editorial

Redshirt Analytics editors cover college football prediction markets: how contracts price the season, where the value sits, and how the platforms compare.