I think people have missed a key value of Waze -- their crowd-sourced mappping infrastructure. They have essentially created from scratch a navigation database that competes with the big two players in the field -- TeleAtlas and Navteq -- with update cycles of a week or less for new user-submitted data. This system would be amazingly powerful in developing countries where the map set is incomplete or full of errors.

That alone makes them worth a good fraction of $1b.