The combination of the teeth or in the case of the one above, phonic wheel, and the ABS sensor will produce a sinusoidal waveform which is monitored by the ABS controller. If the wheel stops moving, the waveform is disrupted and the controller will assume that the wheel has stopped (locked) and will release the brake of the affected wheel until movement is again detected.
Other things on the car such as the Speedo, Sat Nav and in this case TPM will also use that signal combined with’knowledge’ of the rolling radius of the wheel to produce a speed signal. In the case of the TPM it can determine that if the rolling radius changes that the size of the wheel/tyre assembly has changed and will assume flat tyre.
So in this instance not as accurate as the transmitter system used in your car Robin, and indeed some cars will have sensors attached to the wheel inside the tyre.