Everyone will have a different opinion on this. Mine is that Litecoin is undervalued. It should, in principle, rise to about 20-30% of Bitcoin's value over time. However, it is still less than 4% of Bitcoin's value, though it's made big strides lately. Only a few weeks ago, it was at less than 0.5% of Bitcoin's value, and was just noticed by more exchanges and miners. It's possible, also, that Litecoin's GPU-friendly Scrypt algorithm brought in some who were late on mining Bitcoins. Today, GPU's, FPGA's, and even first generation ASIC miners are no longer profitable for Bitcoin.
The only difference between BTC and LTC is that it uses scrypt algorithm, more in coins supply, faster block speeds. How is litecoin undervalued? What make a fiat currency have value? It's supply over demand. What consumers think it's worth.
The only reason BTC is so high is that their are ignorant people investing their money into something that they know nothing about. The investors see hey its the first bitcoin, It has received ubiquitous amount of attention (it must be good), it has more infrastructure than other alt coins for example zipzap are implementing ATM, people only look at the short term of what bitcoin has to offer. To be honest I think peercoin/worldcoin is undervalued.
I could be wrong but isn't ASIC and FPGA hardware in development for scrypt? I know I am changing topics here but is worth investing money in a mining rig that mines scrypt? I am thinking of purchasing a R9 280x it should get around 700Kh/s but I don't know if I will break even since the difficulty will increase exponentially when the ASIC and FPGA hardware comes out for scrypt.
The neat thing about FPGA hardware is that you have millions of logic gates that can be rewritten, even while a program is running. All of those FPGA miners used for Bitcoin can now be recast for Scrypt (Litecoin, Feathercoin) or even QuarkCoin, if you like, and they will likely run faster than either CPU's or GPGPU's.
While pursuing my BSEE at Rensselaer, we discussed numerous applications for FPGA's, which could already switch their operation instantly at run time.
Litecoins are getting purchasing power thanks to Neo Bee and others. eCommerce sites accept Bitcoins first, but some already have Litecoin. Litecoin is still minable on a GPU, leading to widespread ownership of small amounts of the stuff, and is sometimes the most profitable of the altcoins for mining. It has a few other small advantages over Bitcoin. However, the fact that its maximum production will be 4x bitcoin's 21 million tells me that, one day, with the two accepted almost everywhere, that Litecoins will be the quarter to Bitcoin's dollar.