Facebook (FB) - Get Report delivered Q3 results that delighted Wall Street. Facebook's top line came in sizzling, but most importantly, Facebook's outlook for 2020 is also promising.

For a stock that is so cheaply priced, this is one opportunity not to be ignored.

Unblemished Q3 2019 Results

From top to bottom of its income statement, Facebook's Q3 result was one to shut down any doubters about its prospects.

Top-line came in at 29% and beat consensus. Meanwhile, EPS also shone and was up 20% year-over-year. Similarly, other critical metrics were also positive, with daily active users (DAUs) and monthly active users (MAUs) up 9% and 8%, respectively.

Many investors had been claiming that Facebook's family of products is no longer that relevant and that users are switching off their Facebook accounts. That may be so, but CEO Mark Zuckerberg evidently foresaw that potential threat and today the facts appear to differ from the anecdotes.

2020 Outlook Is Very Positive

If investors were concerned that Facebook's growth rates were going to dampen in the near-term, they shouldn't have worried.

Facebook's CFO Dave Wehner noted that even though Q4 2019 was going to be marked by a mid-to-high single-digit deceleration from the 29% revenue growth rate reported in Q3 2019, that looking ahead into 2020, Facebook's revenue growth deceleration would be less pronounced than the drop from Q3 2019 to Q4 2019.

Consequently, shareholders are likely to be rewarded with 22%-24% revenue growth in 2020.

Strong Free Cash Flow

One aspect of Facebook which investors don't seem to be putting sufficient weight on is Facebook's ability to continue to grow its top line, while at the same time oozing free cash. In other words, despite Facebook still investing for growth, it is also generating strong free cash flow.

In fact, this quarter alone saw Facebook generate close to $5.8 billion of free cash flow.

Consequently, we are left with Facebook's debt-free balance sheet which carries just over $52 billion of cash and equivalents, meaning approximately 10% of its current market cap is made up cash.

Valuation - Large Margin Of Safety

As the table shows, each of Facebook's peers has seen the multiples investors are willing to pay for them compress. Presently, investors have become fearful of whether these large tech companies will remain as pertinent and growing as sustainably over the coming two to three years.

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For example, we can see on a P/Sales ratio that Alphabet (GOOGL) - Get Report , Twitter (TWTR) - Get Report  and Facebook have all seen their current P/Sales trade at a discount to their historical averages. The only one that bucks this trend is Amazon (AMZN) - Get Report , but even then, its share price has gone nowhere in the past six months.

In essence, these tech stocks have been highly volatile investments during 2019. Nevertheless, going forward, Facebook is clearly the best bargain opportunity, with 22%-plus growth rates on the horizon while its cash flows from operations are still being priced at close to 17x.

The Bottom Line

Facebook stands head and shoulders above most other companies in its ability to sustainably grow its top-line, while at same time converting its revenues to free cash flow at very high margins.

Currently, investors are not being asked to pay a lot for Facebook. But this bargain opportunity may not be available for too much longer.

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The author has no positions in any of the stock mentioned in this article.