The process of estimating what an item is worth is known as?

Valuation is the correct term for the process of estimating what an item is worth. It involves determining the monetary value of an asset based on various factors, such as its condition, market trends, demand, and specific characteristics. In the context of automotive damage appraisal, valuation is essential for determining the cost of repairs, compensation, and overall worth of a vehicle post-damage.

While terms like depreciation, evaluation, and assessment may seem related, they refer to distinct concepts. Depreciation specifically deals with the reduction in value of an asset over time, often due to wear and tear or obsolescence. Evaluation generally encompasses a broader range of assessments, not strictly tied to assigning a monetary value. Assessment can refer to appraisal or the process of measuring something, but it may not always result in a specific value being assigned. Thus, valuation is the most accurate term for the process of estimating an item's worth.