Say a business has $1M EBITDA, but is dependent on a set of machinery or vehicles that require periodic replacement at an average cost of $300K per year. Businesses like this seem to consistently be listed by brokers at 4-5x EBITDA, with no "discount" given for the necessary recurring CapEx. Are these businesses just overpriced? Or is it standard to ignore that cost when valuing the business? Obviously the answer will vary somewhat by industry, but this seems to be the norm across a range of industries.