In the EMH, investors have a long-term perspective and return on investment is determined by a rational calculation based on changes in the long-run income flows. However, in the markets, investors may have shorter horizons and returns also represent changes in short-run price fluctuations. Recent years have witnessed a new wave of researchers who have provided thought provoking, theoretical arguments and provided supporting empirical evidence to show that security prices could deviate from their equilibrium values due to psychological factors, fads, and noise trading. That’s where investors through fundamental analysis and a sound investment objective can achieve excess returns and beat the market.