Question

what Stock screening criteria (fundamental) to use if:
I am Private equity seeking above 30% IRR in 5-7 years (it sector). is there any framework ?

Answer 1

No frameworks that I know of but some useful criteria/ratios could be:
High cash to total assets. Take control of the company and skim it.
Low leverage.-> You increase it and increase ROE.
Low price to book -> Is it undervalued? Bad management -> change it.
High return on asset but low ROE -> Improve capital structure