Its the basic Keyword Golden Ratio invented by Doug Cunnington.
The KGR formula is a straightforward division of the total number of Allintitle results produced by Google for a search phrase by the total number of searches for that term.
KGR is one of the simplest and most direct ways to locate easy-to-rank keyword and is a proven method
Intitle is almost the same as Allintitle:, but it search for broader match in google data (different keyword placement, typing error).
It's used by popular Seo pros because it's found to be more accurate than Allintitle: in certain very hard to rank niches.
We don't calculate a Ratio with Intitle, we determinate if a keyword is easy if "Intitle:The Keyword" in google has less 1000 results for it (0 backlinks should get you top5 quickly).
If it has between 1000 and 100 000 results, it's a medium difficulty keyword (5/10 backlinks should get you top5 quickly)
I personally prefer to use Intitle, I have seen it to be more accurate of difficulty after comparing both scores on a lot of serps by manually looking and analyzing competition
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