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

The main methods of valuation of goodwill are:

Average Profit Method: Goodwill is calculated by multiplying the average profit of past few years by the agreed number of years of purchase.

Formula: Goodwill = Average Profit × Number of Years of Purchase

Super Profits Method: Goodwill is calculated by multiplying super profits by the agreed number of years of purchase, where super profits = Actual Average Profit - Normal Profit.

Formula: Goodwill = Super Profits × Number of Years of Purchase

Capitalisation Method: This method has two approaches:

• Capitalisation of Average Profits: Total capitalised value of business is calculated and actual capital employed is deducted to find goodwill
• Capitalisation of Super Profits: Super profits are capitalised at normal rate of return to find goodwill

"Average Super Profit Capitalization Method" is not a recognized method. This appears to be a combination of terms from different methods but does not exist as a separate method.

When we capitalize super profits, it falls under the Capitalisation Method itself (specifically, capitalisation of super profits approach). We don't have a separate method called "Average Super Profit Capitalization Method."

Therefore, Option 4 is not a method of valuation of goodwill.