Wrapping an elipse to create a "perfect" circle?

Hello,

     I was wondering if anyone any experience with using the wrap function to create a "perfect" circle on a cylindrical tube.  The end goal is to make an on-axis cut in a lathe so that the outcome is as close to cylindrical as possible (it will be tested with a gauge pin during final inspection).  As of now, the best luck I have had is drawing an ellipse and slightly tweaking the height to match the flat plane sketch.  I should be able to get by doing that, but I am wondering if anyone knows a more precise method?

Thanks for your help.

File attached.

-Dan

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