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In today’s digital age, evaluating image compression formats is crucial in ensuring optimal image quality.This study offers a detailed analysis of four leading image formats, namely JPEG, WebP, HEIF, and AVIF, utilizing a multifaceted approach. Our assessment considers critical metrics such as Peak Signal-to-Noise Ratio (PSNR), Mean Squared Error (MSE), Structural Similarity Index (SSIM), Compression Ratio (CR), and Encoding and Decoding time. From our study we found HEIF consistently outperformed the other formats in terms of PSNR, SSIM, and MSE delivering high fidelity and quality with less compression ratios. HEIF and WebP also showed strong performance, while JPEG fell short in preserving image quality compared to modern alternatives. Our study also provides insights into each format’s encoding and decoding times, with JPEG being the fastest and WebP showcasing a compelling balance between quality and processing time. Stakeholders can use this information to make informed decisions when choosing an image format that meets their unique requirements.