The Myth:
Maintenance capital expenditures don’t affect value.

The Reality:
Ignoring CapEx inflates free cash flow and overstates value. Every business has recurring investment needs — whether it’s equipment, vehicles, or tech infrastructure.

Why It Matters:
Failing to account for CapEx misleads buyers and lenders about long-term sustainability.

Practical Tip:
Always subtract normalized CapEx from cash flow.