Computer industry is one of the most outstanding paradigms of value growth in the twentieth century. And Taiwan¡¦s computer-related industry has also developed since the early beginning of the twentieth century. Since 1980, the electronics industry in Taiwan has taken only twenty years or so to be the main competence advantage, which creates the highest value of output. Seeing the module characteristic of Taiwan¡¦s electronics industry, and the awareness of the entrepreneur network, this study hopes to combine the two concepts to have a clear understanding of the phenomenon about how the electronics industry rose rapidly in Taiwan, and also hopes to figure out the business performance of each leading firm in the most important five component areas in Taiwan¡¦s electronics industry. This study has chosen current operating value (COV) to be the main concept, which was advocated by G. Bennett Stewart (1990). And through the study of each company¡¦s free cash flows, this study then further examines the relationships among the free cash flows (FCF), the company¡¦s current operating value (COV) and market value (MV). That is, this thesis is to study whether a firm makes proper use of its cash flows will help bring positive market values to itself, and to see the range of the market value added (MVA) it will bring to the firm. This study has used the dimensions mentioned above. Based on the references, the sample firms are those with a long history or the leading companies in the areas of the top five components in Taiwan¡¦s electronics industry. And all the finance-related information of the sample firms is derived from the TEJ Database with a period of from 1991 to 2006. The variables then are calculated, and the hypotheses are defined and testified. At last, statistics is used to analyze the data of the outcomes. The study shows that if we examine a firm¡¦s performance by way of the free cash flows, the more stable business performance the sample firms has, the more the firm¡¦s current operating value at the t period can anticipate the firm¡¦s market value at the t+1 period. Besides, for those component firms with a higher accumulated operating cash flows than accumulated investment cash flows, their current operating value can create more added market values. Based on the two results, a firm¡¦s conduction of free cash flows will have a direct influence on the firm¡¦s stability of business performance, and those firms with more stable performance will create positive added market values.