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How Power Ratings Become CFB Fair Value

How the college football model turns power ratings into fair value: simulating the season, converting to title probability, and de-vigging market prices.

By Redshirt Editorial · 2026-08-15
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Key takeaways
  • The model converts power ratings into game-by-game win probabilities, then simulates the season and bracket to produce each team's title probability.
  • Ohio State and Notre Dame top the model at 11.3% fair value each, ahead of Oregon at 10.1% and Texas at 9.9%.
  • Fair value is the de-vigged market consensus, so a contract offers edge only when its best price sits below that number.
  • Ohio State trades at 13c on Kalshi against 11.3% fair value, so its price already carries a premium to the model.
  • Texas is the cheapest read among the leaders, with a best price of 12c on Polymarket versus 9.9% fair value.

Fair value is the number the model publishes for every team, and it is built in three steps: turn power ratings into game-by-game win probabilities, simulate the season and playoff bracket to get a raw title probability, then reconcile that output with de-vigged market prices. For the 2026 title, the process puts Ohio State and Notre Dame on top at 11.3% each, with Oregon at 10.1% and Texas at 9.9% just behind.

How do power ratings become win probabilities?

A power rating is a single number for team strength. On its own it says little; the model's job is to translate the gap between two ratings, adjusted for site and rest, into a probability that one side wins a given game. A larger rating edge maps to a higher win probability, and the same rating feeds every matchup on a team's schedule.

That translation is where schedule strength enters. A strong rating behind a demanding slate produces lower cumulative win probabilities than the same rating against a soft one. This is why teams with similar reputations can separate on the board once the full schedule runs through the model.

How does simulation turn probabilities into a title number?

Individual game probabilities are only inputs. The model simulates the entire season thousands of times, then seeds and runs the playoff bracket in each pass. The share of simulations in which a team lifts the trophy is its raw title probability.

That method captures paths, not just talent. A team can carry a strong rating yet see its title share capped by a tough road to the bracket, while a slightly lower-rated team in a friendlier region banks more clean runs. The simulation is what separates Indiana at 8.7% and Miami at 6.7% from the cluster at the top.

Where the model's fair value sits for 2026

The published fair values compress the field tightly at the top. Ohio State and Notre Dame lead at 11.3%, Oregon holds 10.1%, Texas 9.9%, and Georgia 9%. The gap from first to fifth is under two and a half points, which signals a title race the model views as unusually open.

Below the leaders, the drop is steeper: Miami at 6.7%, LSU at 5%, then a long tail with Texas A&M at 2.6%, Texas Tech at 2.5%, Alabama at 2.3%, and Oklahoma at 2%.

Model Fair Value, 2026 National Title
Ohio State11.3%
Notre Dame11.3%
Oregon10.1%
Texas9.9%
Georgia9%
Indiana8.7%
Miami6.7%
LSU5%

How fair value flags a tradeable price

Fair value only matters next to the price on the screen. Because raw contract prices across a field sum past 100%, the model de-vigs them into clean probabilities, and that de-vigged consensus is the reference. A contract reads as value when its best available price sits below fair value, and as a premium when it sits above.

The current board shows both. Ohio State's best price is 13c on Kalshi against 11.3% fair value, a premium to the model. Texas is the tighter read: 12c on Polymarket versus 9.9%. Georgia at 10c on Kalshi and Indiana at 9c on Kalshi sit just over their fair values as well, which is typical for liquid favorites carrying a small margin.

Best Price vs Fair Value: Title Leaders
Ohio St price13c
Texas price12c
Oregon price11c
Georgia price10c
Indiana price9c

Reading the board across venues

The model does not pick a venue; it reports the cheapest price wherever it lives. Right now Kalshi holds the best price on Ohio State, Notre Dame, Oregon, Georgia, and Indiana, while Polymarket leads on Texas, Miami, LSU, and most of the tail. Splitting the shortlist by venue is how the model keeps the fair-value comparison honest.

Prices and the model can both be wrong, and fair value is an estimate, not a guarantee. New traders comparing the two boards can weigh promos such as Kalshi FADE or Polymarket TGSWC when choosing where to price a contract, but the discipline is the same: trade only when price sits under fair value, and treat the model as a reference rather than advice.

TeamsOhio StNotre DameOregonTexasGeorgiaIndiana
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Frequently asked questions

How does the model turn power ratings into fair value?

Power ratings become per-game win probabilities, which feed a season and bracket simulation. The share of simulations a team wins the title becomes its raw probability, then that is reconciled against de-vigged market prices to set fair value.

What is a de-vigged fair value?

It is the market price with the built-in margin stripped out so the numbers read as clean probabilities. Raw contract prices across a field sum to more than 100%, and de-vigging rescales them into a coherent set.

Which team does the model rate highest for the 2026 title?

Ohio State and Notre Dame share the top mark at 11.3% fair value each, followed by Oregon at 10.1% and Texas at 9.9%.

When does a contract show value against the model?

When the best available price sits below the model's fair value. Among the leaders, Texas at 12c on Polymarket against 9.9% fair value is the tightest read, while Ohio State at 13c already trades above its 11.3% mark.

Why do the National Title fair values not add up to 100%?

The list above covers only the twelve most prominent contracts, not the full field. The remaining probability is spread across dozens of teams outside the shortlist.

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.