If litecoin would get the same adoption as Bitcoin, it should be priced 1/4 of the BTC value, due to the max supply which is 4 times as large. So from that perspective Litecoin currently is hugely undervalued. The question no one can truly answer is, will litecoin get adopted/attention like bitcoin? Scrypt asic miners are coming, not any time soon as far as I know. Litecoin is in the GPU mining rig stage, like Bitcoin half a year ago.

As reflected in the recent price surge, the general feel around litecoin has been positively increasing the recent period. Like any other stock, the price, especially the LTC/BTC-pair, represents the general feeling, which seems to be more positive the recent period.