The money an owner of the business could withdraw each year without weakening it. In other words, profit minus whatever is needed to keep machines, facilities and competitiveness intact.
MoatLens tip: This is the most honest number that exists for a company — which is why MoatLens builds its fair value on it above all. It answers the only question a long-term investor really has: what does this business throw off if I own it and keep it? Companies that must keep investing merely to stay where they are look fine on profit. Not here.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
