The score is based on the following formula: http://www.supremacy1914.com/fileadmin/files/PointFormula.pdf
Now that you have seen it, let me simplify as best I can. Points are based on your moral, improvements and number territories you have. So, you can have a higher point with fewer territories but more buildings and a higher moral.
It is calculated daily and all players score based on this are what places you.
Hope it helps.
