I don't know of another way to do it. The dial indicator would have a magnetic base that would attach to a flat spot on the block. Adjustable arms would allow the indicator stylus to rest on the shaft. As the shaft is turned, the indicator would give run-out.
If the head is removed and all the lifters are up enough to avoid touching the cam, a bent camshaft would likely bind as it turns. This is a course test, particularily if the bearings are a bit loose but it is a good first test. If it binds a lot, the cam is bent.
The gear, if it is undamaged, could have the face measured with a dial indicator and provide several times the accuracy for measuring run-out over measuring the shaft directly. I'm afraid these are the only methods I can think of. Maybe someone else on the board will have an idea.
These dial indicator setups can be purchased at companies like Enco or Grizzley for less than $50 (at least that's what they cost when I got mine).
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