Which of the following is not a method of valuation of goodwill?

Average super profit capitalization method

The correct answer is Option (4) → Average super profit capitalization method

The main recognized methods of valuing goodwill are:

1. Average Profit Method
   → Goodwill = Average Profit × Number of Years’ Purchase

2. Super Profit Method
   → Goodwill = Super Profit × Number of Years’ Purchase

3. Capitalisation Method

   • (a) Capitalisation of Average Profit

   • (b) Capitalisation of Super Profit