RATING = (((SOS-0.5)/0.037)*0.67) + (((SOSL10-0.5)/0.037)*0.33) + 100 + (0.67*(MARG+(((ROAD-HOME)*3.5)/(GAMES))) + (0.33*(MARGL10+(((ROAD10-HOME10)*3.5)/(10)))))
SOS = Season win/loss percentage of team's opponents, expressed as a decimal (e.g., .500)
SOSL10 = Season win/loss percentage of team's last 10 opponents, expressed as a decimal (e.g., .500)
MARG = Team's average scoring margin
MARGL10 = Team's average scoring margin over the last 10 games
HOME = Team's home games
HOMEL10 = Team's home games over the last 10 games
ROAD = Team's road games
ROADL10 = Team's road games over the last 10 games
GAMES = Team's total games
Emphasis seems to be placed on the Strength of Schedule and Recent performance. It is purely mathematical formula for trying to compare point differential between two opposing teams on a given night with 3.5 points being added to the home team to give a potential point spread for the bettors.
But then again you need to factor in matchup histories, how the team is performing (ie do they play uphill (trailing) or downhill (ahead most of the time) and how they finish in the 4th qtr. This does not get documented much and could present a lucrative opportunity for someone to set up an NBA handicapping tipping service on line.