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The various methods of valuation of goodwill are:

Where goodwill = Average profit x No. of years’ purchase

Average Profit = Total profit of past given years / Number of years

Total products of profits / Total of weights

The various methods of valuation of goodwill are:

**1. Average profit method:**Where goodwill = Average profit x No. of years’ purchase

Average Profit = Total profit of past given years / Number of years

**2. Weight average method:**Total products of profits / Total of weights