If you’ve thought to ask this question, you’re definitely on the right track to understanding how admissions professionals think. They are trying to figure out how well you’ve done in relation to your immediate peers. What this means is that if the highest grade point average available at your school is a 4.0, you shouldn’t be intimidated by a friend at another school who is bragging about a weighted 4.5. Accordingly, you might say that students are judged against other applicants from their high school. That said, don’t stress over being ranked 4 compared to 6. If you’re at the top of your class, the differentiators increasingly revolve around extracurricular activities and intangible personal qualities. Admissions officers aren’t wondering why you weren’t ‘president’ or ‘editor in chief’ or ‘math team captain’ but they are looking to see that whatever you’ve chosen to do, you’ve really made your mark.
First, admissions officers will compare you to your school context to be able to identify whether you have been able to stand out. Then they will compare your profile to the admissions pool at large. Unfortunately, just because you stand out at your school doesn’t mean you stand out compared to everyone who applied.