Former PulteGroup CEO James Grosfeld on Wednesday pointed to the company's dividend payouts and share buybacks to justify siding with William Pulte Sr. in his battle with the current CEO, Richard Dugas.
Grosfeld, PulteGroup's largest stock holder among its directors, spoke one day after he resigned from the board.
Grosfeld said Pulte pays the largest dividend in the home building sector but is not the most profitable company in the group "by a longshot."
"They're buying their stock in. They have a hard book value of $9 a share, and their deferred tax asset, which is part of book value, is another $4.50 a share," he told CNBC's "Fast Money: Halftime Report."
"If you look at the average price that Pulte has paid over the last few years for their prices, [it is] over $19 a share. I don't know any other homebuilder who is paying that kind of price for their shares," he said.
PulteGroup announced earlier this month Dugas would retire effective May 2017, bowing to a demand from founder and Chairman Emeritus Bill Pulte.