Ann: FY14 Results Investor Presentation, page-30

Valuations should be based on distributable cash flow. You subtract growth capex in forecast future cashflows because it is a cost of the growth that you are presumably forecasting. Growth is not free. But beware only profitable growth (ie. returns in excess of the cost of capital or required return) add value.

If you can point me to a reputed investor or investment academic that says otherwise I'd be interested in hearing, but Damodaran, Greenwald etc agree with the above.