No it doesn't. For a start, the first thing it does is estimate the level of the buying club.
Which is only one of the five factors they use in the second step to estimate the transfer value.
Overall the approach is quite valid, with correlative significance, albeit not regressive significance. But the inclusion of the book value adds what is essentially a meaningless accounting convention to the valuation of a unique asset. So it skews the data in the case of players with very high or zero book values, like Rudiger and Pickford.
which means the book value doesn't have the significance you're assigning it.