The Non-Operating Asset denotes assets which are redundant and not in use for the ongoing operations of a business enterprise. These are referred to as redundant assets. In business valuation analysis and in estimating the fair market value of a business entity using the Net Asset Value (NAV) method, business valuation analysts must subtract non-operating assets. In valuing a business as a going concern, only operating assets which are used in generating the business’ cash flows are included in the analysis. An example could be bare land which a manufacturing firm may own and listed on the balance sheet. The value of the bare land should be excluded in arriving at the fair market value of the business when applying the NAV method.