Some time has passed since the last time we looked at Facebook's (FB) valuation. Since then, both the share price and the intrinsic value have moved significantly higher as business continued its rapid expansion. At the moment, a conservative valuation of Facebook's business gives $32 of value per share while its share price nears $80.
A large valuation gap is absolutely normal for growth companies such as Facebook and refers to the value of prospective earnings, which may or may not be realized. The current share price of $80 implies that Facebook's earnings will stabilize at 2-2.5x its current earnings in the not-too-distant future. Facebook's business model may be capable of this growth, but there are many risks to this optimistic scenario. Should earnings stabilize at lower levels, major re-pricing is more than warranted.