diff --git a/client/ayon_core/tools/sceneinventory/model.py b/client/ayon_core/tools/sceneinventory/model.py
index df0dea7a3d..330b174218 100644
--- a/client/ayon_core/tools/sceneinventory/model.py
+++ b/client/ayon_core/tools/sceneinventory/model.py
@@ -68,13 +68,7 @@ class InventoryModel(TreeModel):
         }
 
     def outdated(self, item):
-        value = item.get("version")
-        if isinstance(value, HeroVersionType):
-            return False
-
-        if item.get("version") == item.get("highest_version"):
-            return False
-        return True
+        return item.get("isOutdated", True)
 
     def data(self, index, role):
         if not index.isValid():
@@ -297,6 +291,21 @@ class InventoryModel(TreeModel):
         )
         sites_info = self._controller.get_sites_information()
 
+        # Query the highest available version so the model can know
+        # whether current version is currently up-to-date.
+        highest_version_by_product_id = ayon_api.get_last_versions(
+            project_name,
+            product_ids={
+                group["version"]["productId"] for group in grouped.values()
+            },
+            fields={"productId", "version"}
+        )
+        # Map value to `version` key
+        highest_version_by_product_id = {
+            product_id: version["version"]
+            for product_id, version in highest_version_by_product_id.items()
+        }
+
         for repre_id, group_dict in sorted(grouped.items()):
             group_containers = group_dict["containers"]
             repre_entity = group_dict["representation"]
@@ -306,12 +315,6 @@ class InventoryModel(TreeModel):
 
             product_type = product_entity["productType"]
 
-            # Store the highest available version so the model can know
-            # whether current version is currently up-to-date.
-            highest_version = ayon_api.get_last_version_by_product_id(
-                project_name, version_entity["productId"]
-            )
-
             # create the group header
             group_node = Item()
             group_node["Name"] = "{}_{}: ({})".format(
@@ -320,8 +323,23 @@ class InventoryModel(TreeModel):
                 repre_entity["name"]
             )
             group_node["representation"] = repre_id
-            group_node["version"] = version_entity["version"]
-            group_node["highest_version"] = highest_version["version"]
+
+            # Detect hero version type
+            version = version_entity["version"]
+            if version < 0:
+                version = HeroVersionType(version)
+            group_node["version"] = version
+
+            # Check if the version is outdated.
+            # Hero versions are never considered to be outdated.
+            is_outdated = False
+            if not isinstance(version, HeroVersionType):
+                last_version = highest_version_by_product_id.get(
+                    version_entity["productId"])
+                if last_version is not None:
+                    is_outdated = version_entity["version"] != last_version
+            group_node["isOutdated"] = is_outdated
+
             group_node["productType"] = product_type or ""
             group_node["productTypeIcon"] = product_type_icon
             group_node["count"] = len(group_containers)
@@ -490,27 +508,11 @@ class FilterProxyModel(QtCore.QSortFilterProxyModel):
     def _is_outdated(self, row, parent):
         """Return whether row is outdated.
 
-        A row is considered outdated if it has "version" and "highest_version"
-        data and in the internal data structure, and they are not of an
-        equal value.
+        A row is considered outdated if `isOutdated` data is true or not set.
 
         """
         def outdated(node):
-            version = node.get("version", None)
-            highest = node.get("highest_version", None)
-
-            # Always allow indices that have no version data at all
-            if version is None and highest is None:
-                return True
-
-            # If either a version or highest is present but not the other
-            # consider the item invalid.
-            if not self._hierarchy_view:
-                # Skip this check if in hierarchy view, or the child item
-                # node will be hidden even it's actually outdated.
-                if version is None or highest is None:
-                    return False
-            return version != highest
+            return node.get("isOutdated", True)
 
         index = self.sourceModel().index(row, self.filterKeyColumn(), parent)
 
diff --git a/client/ayon_core/tools/utils/lib.py b/client/ayon_core/tools/utils/lib.py
index 8bcfe8b985..4b7ca5425e 100644
--- a/client/ayon_core/tools/utils/lib.py
+++ b/client/ayon_core/tools/utils/lib.py
@@ -123,6 +123,7 @@ def paint_image_with_color(image, color):
 
 def format_version(value):
     """Formats integer to displayable version name"""
+    value = int(value)  # convert e.g. HeroVersionType to its version value
     label = "v{0:03d}".format(abs(value))
     if value < 0:
         return "[{}]".format(label)