Inventory evaluation is the process of assessing the value of an organization’s inventory. This assessment can be made on a periodic basis, or as part of a specific business operation such as a sale or merger. It takes into account a variety of factors including cost, market and legal requirements, product worth, and other business-specific criteria. This evaluation helps organizations make informed decisions about their inventory, such as how much to hold in stock, where adjustments may be necessary, and when to liquidate surplus items. An accurate and up-to-date evaluation of a company’s inventory can provide valuable insight into their current and future operations.