CrowdStrike and Coinbase Could Be Worth More Than Pepsi and Starbucks Within 5 Years

It's hard to think of a business with more iconic brands than PepsiCo. Not only does it own its namesake Pepsi brand, which was launched under the Pepsi-Cola name in 1898, but it also owns big-name brands such as Mountain Dew, Lay's potato chips, Gatorade, Doritos, Tostitos, Quaker Oats, and more.

Despite being founded recently, CrowdStrike and Coinbase could be valued higher than Pepsi and Starbucks in 5 years

Both CrowdStrike and Coinbase are quickly approaching milestones that would put them ahead of legacy food and beverage giant PepsiCo and coffeehouse chain Starbucks in terms of market valuation. If things go well for these two companies, they could be worth more than Pepsi within five years.

Here's a closer look at how CrowdStrike and Coinbase could pull this off.

1. CrowdStrike (CRWD)

CrowdStrike isn't a single cybersecurity product. Instead, it's a software platform with nearly 30 products -- called modules -- to choose from. Customers can select the modules that meet their needs and tend to start small before consolidating their cybersecurity spend by increasing the number of CrowdStrike modules they're using.

CrowdStrike grows in two main ways. First, it can attract new customers, which it's doing. The company doesn't report how many end users it has anymore, but it confirms that it's still adding net new customers. Second, its customers can adopt more of its software modules, which is also happening.

Between net new customers and the adoption of more modules, CrowdStrike's annual recurring revenue (ARR) is skyrocketing. In its fiscal Q3 of 2025, the company surpassed ARR of $4 billion, which was up 27% year over year. But it's not stopping there. Roughly six years from now, management hopes to be at $10 billion in ARR.

CrowdStrike also aims for a long-term free cash flow margin of 34% to 38%. Assuming it hits its goals, the company could be generating somewhere around $3.5 billion in annual free cash flow. In this scenario, its free cash flow valuation could get a little cheaper between now and 2030, and its market valuation could still surpass Pepsi's current market cap.

With the cybersecurity space being as large and crucial as it is, I wouldn't bet against industry leader CrowdStrike.

2. Coinbase (COIN)

To be clear, I think that CrowdStrike's path to a $200 billion valuation is much smoother than Coinbase's path. However, the cryptocurrency platform still has a shot.

From a regulatory perspective, the long-term outlook for cryptocurrency has always been somewhat murky. But the next four years could be the most favorable ever considering President-elect Donald Trump ran with a pro-crypto message. Furthermore, cryptocurrency is growing in popularity, motivating other politicians to take it seriously on behalf of their constituents.

In short, if there was ever a time in which crypto was poised for substantial adoption, the time is now. And that's particularly good for Coinbase. Not only is the platform used by millions of people, but it's also seen as a trustworthy platform for institutional investors and enterprises.

Now, granted, the cryptocurrency space is known for its ups and downs, so investors should prepare themselves for some volatility. That said, when times are good, Coinbase can be a very profitable business -- it had more than $3 billion in annual earnings before interest, taxes, depreciation, and amortization (EBITDA) a few years ago.

Could Coinbase hit $7 billion in EBITDA over the next five years in a favorable regulatory environment for crypto? Things get interesting for shareholders if it can.

Consider that Coinbase's enterprise value is roughly 30 times its EBITDA right now, which is a reasonable valuation. At this multiple, Coinbase would be worth more than Pepsi if it can boost its EBITDA to $7 billion. Granted, broad adoption for the cryptocurrency ecosystem would be needed for profits to grow this much, and that's not guaranteed. But even just modest growth will likely push its valuation higher than Starbucks', which is still an impressive feat.

Ultimately, I believe that both CrowdStrike and Coinbase will be valued higher than Starbucks before long. And I believe they could both be worth more than Pepsi in the next five years if things go well.

That said, I'd consider Coinbase the more speculative prediction of the two. By contrast, even if it doesn't reach the milestone within the next five years, I believe it's only a matter of time before CrowdStrike is more valuable than Pepsi.