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Business Focus Lesson: Why PepsiCo Trails Coca-Cola

PepsiCo brings in more than twice the revenue of Coca-Cola, yet investors value it at roughly half as much, Fortune reported on October 26. The gap says a lot about where each company spent its attention.

For founders, the story is a free case study in business focus. Sales growth matters, but a crowded portfolio can quietly drain the one product that built your name. The same logic explains why investors keep telling startups to find a niche.

The Revenue Versus Value Gap

Revenue measures how much a company sells. Market value measures what investors expect it to earn in the future. When the…

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