"It is no matter for surprise that where many of the component elements of future income have been omitted from the asset valuations and where those component elements that have been included were predominantly undervalued, the concern should exhibit, year after year, a ratio of operating profit to book value of assets much above that which is found in other concerns in the same industry. Such a concern is said to have a valuable goodwill. If it changes hands, it will do so at a total consideration in excess of the difference between its book totals of assets and of liabilities."

Canning, John B. The Economics of Accountancy [pg.42] 1929