Which is not a method of valuation of goodwill?

Adjusted Profit Method

The correct answer is Option (2) → Adjusted Profit Method

The commonly accepted methods of valuation of 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. Capitalization Method – Goodwill = Capitalized Value of Business − Actual Capital Employed.