Undervalued... if you compare it with real estate and other offline assets?
This dude argues that domains are undervalued generally:
I believe domain names are undervalued for a few reasons:
Many business owners still don?t understand how the Internet works. You could give many business owners the best category defining domain name, but they would have no idea what to do with it or how to build a website. There is also still a tremendous amount of disparity in web development. I could put out a bid on a fully interactive website and you can bet I would get bids ranging from a few hundred dollars to tens of thousands of dollars for the exact same quote. If a business owner doesn?t know how to approach this, it?s easier to focus on what is tried and true.
What do you think?