Just did my W116 with a dial indicator. There are two adjustments:

Bearing End Play

Rotate the hub several times before measuring.
Place the magnetic base of the stand on the wheel hub and the dial indicator touching the center "0" ring of the hub grease cap.
Check the end play of the wheel hub by pulling and pushing of the flange.
Don't rotate the wheel while measuring.
My spec's are for this: 0.01-0.02mm

Lateral Runout

Place the base of the dial indiator on the floor with the dial indicator about 1" from the outer edge of the rotor.
Rotate wheel and record runout.
My spec's are: max 0.12mm

Hope this helps.